Uganda smallholder pigs value chain development: Situation analysis and trends

Transcription

1 Uganda smallholder pigs value chain development: Situation analysis and trends ILRI PROJECT REPORT

2 International Fund for Agricultural Development European Union CGIAR is a global partnership that unites organizations engaged in research for a food secure future. The CGIAR Research Program on Livestock and Fish aims to increase the productivity of small-scale livestock and fish systems in sustainable ways, making meat, milk and fish more available and affordable across the developing world. The Program brings together four CGIAR centres: the International Livestock Research Institute (ILRI) with a mandate on livestock; WorldFish with a mandate on aquaculture; the International Center for Tropical Agriculture (CIAT), which works on forages; and the International Center for Research in the Dry Areas (ICARDA), which works on small ruminants.

3 Uganda smallholder pigs value chain development: Situation analysis and trends Alex Tatwangire

4 2014 International Livestock Research Institute (ILRI) This publication is copyrighted by the International Livestock Research Institute (ILRI). It is licensed for use under the Creative Commons Attribution-Noncommercial-Share Alike 3.0 Unported Licence. To view this licence, visit creativecommons.org/licenses/by-nc-sa/3.0/. Unless otherwise noted, you are free to copy, duplicate or reproduce, and distribute, display, or transmit any part of this publication or portions thereof without permission, and to make translations, adaptations, or other derivative works under the following conditions: ATTRIBUTION. The work must be attributed, but not in any way that suggests endorsement by ILRI or the author(s). NON-COMMERCIAL. This work may not be used for commercial purposes. SHARE ALIKE. If this work is altered, transformed, or built upon, the resulting work must be distributed only under the same or similar licence to this one. NOTICE: For any reuse or distribution, the licence terms of this work must be made clear to others. Any of the above conditions can be waived if permission is obtained from the copyright holder. Nothing in this licence impairs or restricts the author s moral rights. Fair dealing and other rights are in no way affected by the above. The parts used must not misrepresent the meaning of the publication. ILRI would appreciate being sent a copy of any materials in which text, photos etc. have been used. Editing, design and layout ILRI Editorial and Publishing Services, Addis Ababa, Ethiopia. Photographs provided by ILRI and the Uganda smallholder pigs value chain development project ISBN X Citation: Tatwangire, A Uganda smallholder pigs value chain development: Situation analysis and trends. Nairobi, Kenya: International Livestock Research Institute (ILRI). ilri.org Better lives through livestock ILRI is a member of the CGIAR Consortium Box 30709, Nairobi 00100, Kenya Phone: Fax: ILRI-Kenya@cgiar.org Box 5689, Addis Ababa, Ethiopia Phone: Fax: ILRI-Ethiopia@cgiar.org

5 Uganda smallholder pigs value chain development: Situation analysis and trends iii Contents Tables Figures v vii Abbreviations 1 Glossary 3 Acknowledgements 4 Executive summary 5 Production of pigs in Uganda 8 Introduction and objectives of the study 13 Different forms of livestock and pig meat products 18 Consumption and expenditures: Current status and trends 20 Production of pigs in Uganda 45 Imports and exports of live animals and meat products 54 Current perspective on opportunities for pro-poor pig value chain development R&D 59 Inputs and services: Pig health 61 Inputs and services: Genetics 66 Inputs and services: Feeds 70 Inputs and services: Knowledge systems 75 Inputs and services: Credit 82 Value addition and marketing 88 Food safety 93 Competitiveness of the pig sector 99 Value chain governance 103 Externalities 106 Pig development strategies and activities 110 Opportunities for pro-poor pig value chain development 112

6 iv Uganda smallholder pigs value chain development: Situation analysis and trends GIS datasets, national surveys, project datasets etc. 114 References 121 Annexes 125

7 Uganda smallholder pigs value chain development: Situation analysis and trends v Tables Table 1. Trends in livestock population (values in 000 ) in Uganda 15 Table 2. Pigs and ruminant livestock population (000) in Table 3. Proportion of per capita supply of food and energy for Uganda in 1999 and Table 4. Proportion of per capita supply of protein, and fat for Uganda in 1999 and Table 5. Proportion of households that raised or owned animals during the 12 months, 2009/10 26 Table 6. Number of livestock owned, sold, and slaughtered by gender in 2009/10 26 Table 7. Number of livestock owned, sold, and slaughtered by gender in 2000/01 27 Table 8. Proportion of households that owned, sold, and slaughtered pigs, Table 9. Proportion of households that owned, sold, and slaughtered pigs by region, Table 10. Number (000) of households with pigs, and number of pigs (000) in Uganda 31 Table 11. Number of pigs owned and sold by urbanization and sex of household head, 2009/10 31 Table 12. Number of pigs owned and sold by region and gender in 2009/10 32 Table 13. Number of pigs owned and sold by region and gender in 2000/01 33 Table 14. Average number of pigs owned by education level and region in 2000/01 33 Table 15. Average number of pigs owned by education level and region in 2009/10 34 Table 16. Distribution of pig ownership, sales and slaughter by quartiles of household income/ adult-equivalent, Table 17. Evolution of Budget Shares in Uganda 37 Table 18. Trends in Ugandan urban population 39 Table 19. Regional distribution of urban population in Uganda 39 Table 20. Total population by regions, and number of people living of less than USD 1.25 and 2/day 39 Table 21. Prices for retail cuts and processed meat at supermarkets in Kampala [May 2012] 40 Table 22. Average price/kg of meat products for the period Table 23. Trends in annual production of meat, milk and eggs (000 t) 46 Table 24. Average livestock carcass weight/yield, Uganda vs. the rest of the world,

8 vi Uganda smallholder pigs value chain development: Situation analysis and trends Table 25. Net-imports of live animals in Uganda, Table 26. Net imports of animal products in Uganda, Table 27. Imports and exports of live pigs and pig meat (and pig meat products), Table 28. Common diseases of pigs in Uganda 62 Table 29. Different pig breeds, performance traits, and breed constraints in Uganda 67 Table 30. Access to various types of information and extension services in the six districts of Uganda (2012) 78 Table 31. Access to credit services and sources of credit in six districts of Uganda, Table 32. Major strengths, weaknesses, constraints (SWOT Analysis) of pork value chains 112 Table A1. Average per capita consumption of livestock products in Uganda 125 Table A2. Quantity of food (energy) among livestock products in Uganda (FAOSTAT) 125 Table A3. Quantity of protein and fat among livestock products in Uganda (FAOSTAT 126 Table A4. Number of producing/slaughtered 126 Table A5. Yield/carcass weight (hg/animal) 126 Table A6. Production (t) of livestock animals 126 Table A7. Distribution of pig ownership, sales and slaughter by quartiles of household expenditure per adult-equivalent, 2000/ Table A8. Imports of live animals in Uganda, Table A9. Imports of meat and meat products in Uganda, Table A10. Exports of live animals in Uganda, Table A11. Exports of meat and meat products in Uganda, Table A12. Pig ownership by district in Uganda,

9 Uganda smallholder pigs value chain development: Situation analysis and trends vii Figures Figure 1. Trend of average per capita consumption of all livestock products in Uganda 21 Figure 2. Figure 3. Trend of per capita consumption of livestock meat products (without edible offals, eggs, milk, freshwater fish) in Uganda 21 Trend of per capita consumption of livestock meat products (without edible offals, eggs, and milk) in Uganda 22 Figure 4. Trend in supply of food by animal products in Uganda 24 Figure 5. Trend in supply of energy by animal products in Uganda 24 Figure 6. Trend in supply of protein by animal products in Uganda 24 Figure 7. Trend in the supply of fat by animal products in Uganda 25 Figure 8. Trends (000) in the number of pigs in Uganda 30 Figure 9. Figure 10. Figure 11. The first-order stochastic dominance analysis (FOSDA) for households, comparing the number of pigs owned in the four welfare quartiles of income/adult-equivalent, 2009/10 36 The first-order stochastic dominance analysis (FOSDA) for households, comparing the number of pigs owned in the four welfare quartiles of income/adult-equivalent, 2000/01 36 The first-order stochastic dominance analysis (FOSDA) for households, comparing the number of pigs owned in the four welfare quartiles of expenditure/adult-equivalent, 2000/01 36 Figure 12. Stocks of live animals (chicken included) in Uganda, Figure 13. Stocks of live animals (without chicken) in Uganda, Figure 14. Number of producing/slaughtered animals 47 Figure 15. Production (t) of livestock animals (FAOSTAT 2012) 47 Figure 16. Yield/carcass weight (hg/animal) 48 Figure 17. Quantity of live animals imported in Uganda, Figure 18. Quantity of live animals exported out of Uganda, Figure 19. Promotion of major crop and livestock enterprises (number of sub-counties in which promoted),

10 viii Uganda smallholder pigs value chain development: Situation analysis and trends Figure 20. Number of technology development sites (TDS) established for major crop and livestock enterprises and number of farmer groups benefiting, Figure 21. Pig value chain map in Uganda 89 Figure A1. Proportion of Households Owning Pigs in Uganda, Figure A2. Total Number of Pigs by District in Uganda, Figure A3. Average herd density/district in Uganda 115 Figure A4. Pig densities/district in Uganda 116 Figure A5. Spatial distribution of human population density in Uganda (CIESIN 2011) 116 Figure A6. Percentage of population living on less than two dollars/day in Uganda 117 Figure A7. Percentage of people living on less than USD 2/day in Uganda 117 Figure A8. Districts with high poverty levels and high pig densities in Uganda 118 Figure A9. Market access, travel time to nearest city with more than 50,000 persons in Uganda 118 Figure A10. Average pig meat consumption in Uganda 119 Figure A11. The Macro-Structure of MAAIF 119 Figure A12. Organization structure 120

11 Uganda smallholder pigs value chain development: Situation analysis and trends 1 Abbreviations ARIS ASF AU IBAR BoU CAADP CARITAS CDFs DDA DSIP EAs FAO FAOSTAT FOSDA GDP HSSP IFPRI ILRI MAAIF MDIs MFIs NAADS NAGRIC and DB NaLIRRI NARO NDP NLC PEAP PHC PMA PVI PVO Animal Resources Information System African swine fever Africa Union Inter African Bureau of Animal Resources Bank of Uganda Comprehensive Africa Agriculture Development Program CARITAS Uganda Cumulative Density Function Dairy Development Authority Agricultural Sector Development Strategy and Investment Plan Enumeration Areas Food Agriculture Organization Food and Agriculture Organization of the United Nations Statistical Division First-Order Stochastic Dominance Analysis Gross domestic product Health Sector Strategic Plan International Food Policy Research Institute International Livestock Research Institute Ministry of Agriculture, Animal Industry and Fisheries Micro Deposit-Taking Institutions Micro-Finance Institutions National Agricultural Advisory Services National Animal Genetic Resource Centre and Data Bank National Livestock Resources Research Institute National Agricultural Research Organization National Development Plan National Livestock Census Poverty Eradication Action Plan Population and Housing Census Plan for Modernization of agriculture Principal Veterinary Inspector Principal Veterinary Office

12 2 Uganda smallholder pigs value chain development: Situation analysis and trends ROSCAs SACCOs SPVCD SVO UBOS UBPA UGX UNHS UNPS URA USD VEDCO VSLA WFAP WHO Rotating Savings and Credit Associations Savings and Credit Cooperative Organizations Smallholder Pig Value Chain Development Project Senior Veterinary Inspector Uganda Bureau of Statistics Uganda Beef Producers Association Uganda shillings Uganda National Household Survey Uganda National Panel Study Uganda Revenue Authority United States dollar Volunteer Efforts for Development Concerns Village Savings and Loans Schemes Water for Agricultural Production World Health Organization

13 Uganda smallholder pigs value chain development: Situation analysis and trends 3 Glossary Boar: Breeding herd: Carcass weight or carcass wt: Enumeration area (EA): Farrow: Feed efficiency: Gilt: Litter size: Market herd: Million metric tonnes (MMT): Sow: Zoonotic diseases or zoonoses: An intact mature male pig Sows, gilts and boars used for breeding purposes and serve as parents of the pigs being readied for market Post-harvest yield of pork (the weight of the slaughtered pig, after removing internal organs, head and feet) One of the many small geographical regions in the country defined by Uganda Bureau of Statistics (UBOS), based on the smallest local government 1 (LC1), and also constituting similar size of the population. An EA is known by the name of the LC1 and is utilized in sampling households (and communities) in the survey and collecting primary data Give birth to a litter of pigs A measure of the effectiveness of feed utilization for pork production (Ratio of the amount of feed consumed/kg of live weight gain) Female pig that has never given birth (a young developing female pig) Number of piglets born to a pig in a single litter, both alive and stillborn Pigs being raised solely for the purpose of being sent to market to produce pork One metric tonne is 1000 kg, thus 1 million metric tonnes is 1 billion kg Female pig (a mature female pig) that has given birth to at least one litter Diseases that can be transmitted between animals and humans

14 4 Uganda smallholder pigs value chain development: Situation analysis and trends Acknowledgements This study was undertaken by Alex Tatwangire, a Consultant of TAMK Development Consult (TDC) Limited, Kampala, Uganda. The consultant would like to thank Emily Ouma, Agricultural Economist of the Smallholder Pig Value Chains Development in Uganda (SPVCD) project, for her considerable input and dedicated contribution to this report. He also would like to express his appreciation to Danilo Pezo, Coordinator/Project Leader SPVCD in Uganda; Michel Dione, Postdoctoral scientist in Animal Health/Epidemiology of the SPVCD project; Kristina Rosel, Coordinator of the Safe Food, Fair Food in Uganda project, and Thomas Fitz Randolph, Director of the CGIAR Research Program on Livestock and Fish for their invaluable support and contributions to this report. Special thanks go to the following institutions for providing access to their datasets without which this report would not have been possible: (i) The International Food Policy Research Institute (IFPRI) for the dataset on Project on Policies for Improved Land Management in Uganda; (ii) The Uganda Bureau of Statistics for their UNHS/UNPS 2009/10 dataset; (iii) the Uganda Revenue Authority (URA) for data on Uganda import and export of live animals and livestock products; and (iv) the Ministry of Agriculture, Animal, Industry and Fisheries (MAAIF) for the literature on government policies, strategies, and regulations. This report was supported by the European Union and the International Fund for Agricultural Development through the Smallholder Pig Value Chains Development in Uganda (SPVCD) Project.

15 Uganda smallholder pigs value chain development: Situation analysis and trends 5 Executive summary Uganda faces low agricultural growth rates that are currently below the average population growth rate of 3.2% per annum and a target rate of 6% per annum that was set in 2003 by the African Union under the Comprehensive Africa Agriculture Development Program (CAADP). The low growth rates highlight the challenge of reversing the declining per capita agricultural production and eradicating poverty in Uganda. Livestock and livestock products play an important role in income generation and are source of high quality protein to many households. The Government of Uganda, through the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF), is implementing different agricultural development policies and strategies to transform subsistence farming to commercial agriculture. These include, among others, the Agricultural Sector Development Strategy and Investment Plan (DSIP) 2010/ /15 and the National Development Plan (NDP). The aim is to achieve prosperity for all through improved agricultural productivity, improved rural household incomes and effective food and nutrition security. The higher path of economic growth in the country is expected to be achieved by improving the performance of the public sector and removing major constraints that prevent the private sector from investing in different agricultural products value chains, including that of live pigs and pig products. Objective of this situation analysis This report assesses the conditions within which the pig value chains in Uganda operate, and sets out a broader national context for the rapid and in-depth pig value chain assessments and analysis at site or small geographical scales through subsequent research activities. Specifically, this report (i) provides an overview of past trends, current status and the likely future directions in pig value chains in Uganda, and (ii) identifies the underlying challenges and opportunities faced by different actors in the smallholder pig production value chains. The study utilizes primary and secondary data from different sources to generate findings. Data was sourced from: the statistical website of Food and Agriculture Organization of the United Nations (FAOSTAT), the Animal Resources Information System (ARIS) of the Africa Union Inter-African Bureau of Animal Resources (AU IBAR), the Uganda Ministry of Agriculture Animal industry and Fisheries (MAAIF), the Uganda Revenue Authority (URA), and from various household surveys conducted by the Uganda Bureau of Statistics (UBOS), different NGOs, international organization (e.g. IFPRI), and the private sector. The study further utilized extensive desk research of existing literature and policy frameworks. Key informant interviews were also conducted with experts in the livestock sector and regulatory institutions of local governments. The findings of this situation analysis will be useful to ILRI and other stakeholders that are interested in developing piggery in Uganda. Livestock subsector in Uganda Livestock contributes about 15% of the agricultural GDP. There has been a 3% increase in the number of livestock and poultry in Uganda, and this increase is attributed to the routine interventions in the livestock subsector that has helped to control animal diseases and improve the livestock production systems. About 4.5 million households

16 6 Uganda smallholder pigs value chain development: Situation analysis and trends (70.8%) in Uganda rear at least one kind of livestock or poultry. The 2008 Uganda Livestock Census reveals that the number of livestock is: 12.5 million for goats; 3.4 million for sheep; 3.2 million for pigs, and; 37.4 million for chicken flocks, of which 2.5 million represent the exotic layers. The number of pigs increased significantly from 0.19 million in 1980, to 1.7 million in 2002, and to 3.2 million in Pig production in Uganda is widespread and appears to be increasing at a high rate. Consumption and expenditure While the consumption of other livestock meat such as bovine meat is reducing, that of pork is increasing. Pork ranks fourth in terms of per capita consumption. Daily consumption of pigs (pigs slaughtered/day) in Kampala is estimated to be between 300 and 500. The average pig meat consumption in Uganda is relatively high (above 750 kg/km 2 per year), especially in urban areas of major districts. The increase in pork consumption in the country is attributed to the increase in size of human population, level of urbanization, purchasing power, and change in tastes and preferences. It is only pig meat among other types of livestock meat that continues to register a steady increase in the level of per capita consumption. Unlike at homes where pork consumption is still low, the demand for ready to eat pork in social places known as pork joints is increasing. This is true whether such social places are in urban or rural areas. The average retail price in Uganda shillings (UGX) 1 /kg is reported to be: 4800 for large piece of pork, 5500 for ready to roast/fry chops, 8500 for sausages, 11,000 for ready to eat pork ( Muchomo ) that is often consumed by people with higher income. The average household expenditure on food items in Uganda is about 28.3%, while only 22% of the food expenditure is allocated to food of animal products. In particular, the budget share for pork reduced slightly, from 6.26% in 2005/06 to 5.77% in 2009/10. Patterns of livestock resources The number of pigs has increased steadily since Pig numbers in Uganda increased from 0.67 million in 1991, to 1.4 million in 1997, to 1.6 in 2001, to 2.3 million in 2005/06 and to 3.2 million in The position of pigs as a priority livestock enterprise among Ugandan households that keep at least one of the various animals improved from a fourth position to a third position, after cows and goats in the last 10 years. The average number of pigs owned is highest (1.1 pigs) for livestock farmers in urban areas than is the case (0.7 pigs) for farmers in rural areas. No doubt, there is a steady increase in the number of pigs and number of households engaged in pig rearing in the country. The gap between male-headed and female-headed households in pig ownership is shown to be reducing with time. About 30.6% of male-headed households owned pigs in 2009/10, compared to 31.9% of their female-headed counterparts. The overall proportion of livestock farm households that own pigs increased from 10% in 1990, to 20.9% in 2000/01, and to 30.9% in 2009/10. The proportion of households owning pigs is highest in the Central region (56%), followed by 30.1% in the Western region, 28.8% in the Eastern region and 14.2% in the Northern region of Uganda. The number of pigs owned has been increasing with the level of education of household heads. This trend of pig ownership is true in all regions, particularly in Central region, where we find relatively high level of urbanization and the largest proportion of pig farmers. Education level and the extent of urbanization in a region may therefore have a positive influence on the number of pigs produced by a household. 1. On 7 August 2013, USD 1 = UGX

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18 8 Uganda smallholder pigs value chain development: Situation analysis and trends Production of pigs in Uganda Growth in livestock has been increasing in the last three decades, but this is still low compared to the growth rate in human population. The number of animals slaughtered is increasing, despite the low growth rate in productivity (yield or carcass weight). The pig industry in Uganda is still considered to be underdeveloped; yet it is only pigs and poultry that have continued to register minor gains in off-take rate in the last 3 decades. The country has the potential to be self-sufficient in pork products. Animal stocks in Uganda are still highest for cattle, followed by goats, pigs and are least for sheep. The increase in production (in tonnes) has been mostly registered in pigs. In the past 10 years, the increase in the number of heads has been more pronounced in the pigs followed by sheep and cattle, chicken and goat meat; the carcass weight for pigs has remained unchanged at 60.0 kg/ animal, but is higher than the average yield in East Africa (56.8 kg) and Africa in general (56.5 kg). Pig keeping in Uganda is categorized in three basic production systems: (i) intensive where pigs are kept housed all the time and provided with feeds, water, and protection from extreme weather; (ii) semi-intensive, where pigs are partly housed and partly kept outdoors on the pasture, and; (iii) extensive (small-scale subsistence) production systems where pigs are kept out-door, to freely move around the homestead as they feed on their own, or tethered. The adoption of intensive (total confinement) system of feeding is increasing, probably due to such factors as land scarcity and improvement in access to information related to commercial production of pigs. Policy framework that influence demand, production and marketing of pork The development of pig enterprise is not yet fully aligned in the national development plans and strategies for poverty reduction. Almost all policy documents are silent on pig farming. Pigs are not among major or priority enterprises selected for strategic investment and promotion in the country. Nevertheless, pig production has continued to grow on its own, and is now a reliable instrument of poverty reduction and economic growth. Efforts to achieve meat output targets in the country are limited by existing livestock policies that focus more on animal (cattle, goats, sheep and chicken) enterprises that require high cost of production compared to piggery. Only the National Agricultural Advisory Services (NAADS) has some activities that promote pig production in the country. Some NGOs such as VEDCO are trying to fill the existing gaps by conducting interventions in pig farming in Central and Eastern Uganda. Imports and exports of live pigs and pork products The number of live pigs imported and exported in and out of the country is almost non-existent. While Uganda exports other live animals and meat products to various countries, including Kenya, Tanzania, Rwanda, Southern Sudan and D.R. Congo, the number of live pigs exported is very low. The pig sector in Uganda only serves the domestic market. There is need to boost quality of pig meat in order to meet the growing demand of premium pig

19 Uganda smallholder pigs value chain development: Situation analysis and trends 9 meat products in the country. Pork quality is still not adequate to meet the standards of export markets, and this is attributed to the informal nature of pig trade and the lack of cooling transport facilities. Almost all the pork produced in the country is sold the same day the animals are slaughtered. Pig carcasses and pork pieces are sold to consumers from butcher shops located along the roads, supermarkets, and ready to eat pork joints. Pig health Several diseases are known to affect pigs in Uganda, and they include among others: African swine fever, foot and mouth disease, helminthosis, scabies, mange (i.e. skin disease characterized by intense itching and caused by mites), coughing, diarrhoea, and footrot. Total morbidity from the five major diseases is estimated at about 31%, while the corresponding mortality from all the five diseases is about 23%. The main pig health constraint in the country is the frequency of ASF outbreaks, for which there is no vaccine at the moment. There is need for more research to quantify the impacts of the most common diseases in different pig production systems. Government veterinary inspectors and officers in MAAIF and in the local governments (district level) work together with other agricultural extension workers from NAADS and NGOs to ensure improvements in animal health. Veterinary authorities are mandated to physically inspect pigs and other animals to ensure that they are free from diseases, vectors, and pests. The private veterinary service providers, drug shops, and community based animal health service providers supplement the work of government veterinary officers in reaching out to pig and other livestock farmers. They provide farmers with information on disease control and drugs to treat pig diseases. Furthermore, big pharmaceutical companies are also active in disease control by supplying animal drugs. Farmers are increasingly becoming aware of the availability of veterinary services. Drug shops are frequently the source of the much needed information on animal health for pig farmers. Poor control of diseases in the country can be attributed to: (i) high cost of veterinary services, (ii) high cost of veterinary drugs, and; (iii) availability of fake, expired, and ineffective drugs in the market. Pig genetics Most pigs in Uganda have no distinct breeds and tend to be crossbreeds of a variety of breeds introduced in the 1960s from other countries. There is limited information on the type of specific breeds and breeding practices in different pig production systems. Pigs in Uganda can be white, black, or black and white. This is in contrast to the black colour of the so-called local pigs, which are considered to be indigenous. There are no commercial breeding services for pigs in Uganda. The use of artificial insemination (AI) in pigs is still limited. Farmers rely on natural mating using the breeds available in their farms or within the neighbourhood. Most farmers recognize the importance of selecting carefully the sows and boars for mating in order to: minimize inbreeding, upgrade their animals, and control diseases. Many times the availability of high quality boars limits the selection of options. The selection of pig breeds is often based on various characteristics, namely the ability to: grow faster, produce a large litter size (number of piglets born), and the nature of feed requirement. Lack of good breeding stock and planned breeding schemes for smallholder pig farmers has resulted in high level of inbreeding, thus leading to small litter size, poor growth rates, and small animal size, especially in the so-called local pigs. In this sense, there is need to put more emphasis on: selection of good piglets for reproduction; improvement of breeding programs, and; eventually use of artificial insemination with selected boars, in order to boost yields and minimize genetic disorders.

20 10 Uganda smallholder pigs value chain development: Situation analysis and trends Production and use of feeds The animal feed industry is under developed, unable to ensure supply of quality feed all year round. The lack of quality controls and the failure by authorities to crack down all those selling and supplying fake agriculture inputs has let down pig farmers in Uganda. Commonly used feeds in pig feeding include: maize bran obtained from local millers, crop residues such as banana and cassava peels, sweet potato vines, cassava leaves, fish meal locally known as silver fish (mukene), own kitchen waste, restaurant wastes (swill), cut-and-carry green forages and farm weeds. Some pig producers also use commercial feeds, mainly brans and the compounded type, especially during the dry season. In the wet season, pig farmers mainly use cut-and-carry green forages, crop residues, and some kitchen/hotel wastes (obtain from own kitchen or purchased locally). Pig farmers complain of poor quality feeds supplied by small-scale producers and traders that tend to use poor quality proportions of various ingredients. There is stiff competition and politics between small-scale feed compounders and large-scale feed producers, which may be responsible for the negative outcomes in feed production. The use of commercial feeds in the country is becoming more important, partly due to limited access to locally produced feedstuffs. Most smallholder farmers are not aware of suitable feed ingredients and the proper formulation of good quality compounded feeds. This has increased the price of available feeds and also reduced the productivity of pig farmers that have adopted improved pig breeds. Knowledge systems The government is running a parallel system of extension services, with the traditional extension service conducted by district veterinary officers, and NAADS providing core extension services. Still, smallholder pig farmers in Uganda have limited access to extension and veterinary services. The government extension service through the NAADS programs, veterinary officers in the districts, fellow farmers and some NGOs provide pig farmers with vital information and training on modern pig farming practices. The information ranges from selection of breeds, feeding practices, disease control, and general pig husbandry. The aim of NAADS program is to empower economically active poor farmers in a sustainable manner, to facilitate the process of group formation, capacity building, and institutional innovations that are all crucial in improving: access to information, local demand for research, productivity-enhancing agricultural advisory services, and technologies. While the advisory services provide technical assistance, knowledge and skills on a demand-led basis to empowered farmers, together with material inputs for agricultural production and marketing, few pig farmers appear to be benefiting when compared to farmers in other enterprises. Piggery is among the least promoted livestock enterprise in the country The trend on pig research appears to be increasing, especially at the major universities, but the number of research and extension personnel that are actively involved in the promotion of piggery, and the time devoted in the sensitization of pig producers are not well known. Farm households receive on average less livestock related advisory services when compared to crop and health related information. It is therefore vital to increase farmers access to affordable information that is related to animal health, feeding, food safety issues, if the livestock production, including piggery, is to improve in the country. Access to credit Credit market in Uganda is small, but largely informal as opposed to being formal. The financial service providers are categorized into four groups, namely: (i) Tier 1 (includes commercial banks); (ii) Tier 2 (credit institutions); (iii) Tier 3 (micro-deposit-taking institutions, MDIs); and (IV) Tier 4 (all other financial institutions and associations that are not regulated by the Bank of Uganda, BoU). These providers operate in a financial infrastructure that is generally considered to be underdeveloped.

21 Uganda smallholder pigs value chain development: Situation analysis and trends 11 Only 20% of the farm households have access to financial services, and mostly depend on semi-formal and informal institutions that are not regulated by the BOU. These institutions makeup the backbone of the rural financial sector in Uganda, but are considered to be weak, unable to guarantee reliable credit access, and good returns to poor people s savings. About 62% of all Ugandans (whether in farm or non-farm occupation) have limited access to financial services, while the majority (42%) of Ugandans that receive credit rely on informal financial service channels. Only 20% of the population have bank accounts. Pigs are considered risky due to the incidences of serious disease outbreaks that can easily wipe out the herds. Pig farmers can only access credit from micro-finance institutions (MFI) based on collective responsibility and membership. Each farmer has to pay an entrance fee into MFI. Loans are then given out depending on farmers ability to repay as determined by the MFIs managers. Currently, eligible pig farmers are required to have at least 30% of the value of the loan. The magnitude of the loan depends on the individual savings of the farmer into the group fund and his or her security credentials such as land endowment. Informal institutions or the lower tier micro finance institutions mostly provide relatively small loans to individuals, groups, and institutions. Most traditional financial institutions hold back their service due to fear of losing their investments in the rural sector. For them, uncertainty that comes with the business plays a key role in accessing their services. Value addition and marketing In Uganda, value addition in the live pigs and pig meat products is largely limited. About 98% of pigs are sold as live animals and are slaughtered for pork that is consumed with limited or no value addition. The potential for value addition on pig meat products is however considered to be vast in the country. The level of productivity, processing, and upgrading of actors along the chain is still very low in terms of production technology that is used, access to market information, and linkages (organization and structure) between various stakeholders, especially those that provide a supportive service to pig producers and up-coming processors. Lack of organization of farmers, traders, processors, and other actors in the value chain creates inefficiencies that opens door for exploitation and poor quality products. There are other key constraints that continue to affect pig farmers such as: (i) poor structure of pig industry reflected on: many traders participating at each and every stage of the supply chain; high transaction costs, lack of capital, lack of improved transport, and limited access to information which leave the majority of smallholder farmers out of higher end markets of pig products. This justifies the need to enforce standards on the handling of live pigs and quality of pig products. (ii) Pig farmers are poorly organized, and are therefore unable to utilize the advantages of collective marketing and high bargaining power. This limits farmers efforts to upgrade into various pig related market exchanges at different knots of the value chain. (iii) Pig farmers also face many technical or management problems that limit productivity, while increasing the cost of production. This also limits their ability to keep improved breeds. An improvement in pork market has contributed to enhanced production, but the market price is still not good enough to encourage and reward high quality pork production. Food safety The public is increasingly becoming aware of the problems related to poor quality pork and other meat products in the country. Hygiene of pork abattoirs and pork joints in Kampala is still poor. Substandard pork easily finds its way on the Ugandan market, while several illegal slaughter places continue to operate without supervision. Consumer confidence is at stake, which calls for the need to promote good quality and safe pork in the country. Quality assurance standards in the pig production process are yet to be embraced. Nevertheless, pig meat which includes pork and pork products such as bacon, ham, and pork sausages are safe to eat, if they are well handled and cooked at temperature of about 70ºC (158ºF). Good pork preparation and proper cooking destroys most of the disease-causing bacteria and infections.

22 12 Uganda smallholder pigs value chain development: Situation analysis and trends Veterinary and public health officials in local governments are mandated with the responsibility of enforcing standards that improve the quality and safety of pork and other meat products. They focus more on the regulation of the informal slaughter places, in order to support the operation of the new upcoming modern abattoirs. However, meat inspectors in the country are demoralized due to lack of authority to punish culprits of illegal and unhygienic pig slaughter. Meat inspectors often deal with problems of zoonoses such as TB, anthrax and various pig diseases. Other major problems include the contamination and prevalence of tape worms. Tape worms are more prevalent in areas with poor handling of sewage and absence of latrines. Lack of clean water in slaughter places, lack of refrigeration facilities in slaughter houses and trucks that transport carcasses create further challenges. The level of awareness among pig producers and traders on issues of pork safety is still low and a big concern for pork consumers. There is poor enforcement of rules and standards even when relevant policies are clear; there is lack of inspectors to conduct ante-mortem, visual inspection of meat organs, and lymph nodes, and further testing of pork in the laboratories. Experts in meat inspection are over-stretched, and yet capacity building is still low. Competitiveness of the pig sector The pig sector in Uganda still faces major challenges that continue to constrain its competitiveness. There is shortage of skilled manpower in areas for adding value; weak legal and regulatory framework that is compounded by poor level of enforcement of food safety requirements; and extremely limited access to financial services for most Ugandans. Nevertheless, piggery in Uganda is increasingly becoming recognized as an enterprise with great potential, given the increase in production and consumption of pork. Pig keeping among smallholders, especially women in the country is growing. The proportion of female-headed households in the livestock sector that also engage in smallholder pig production has increased in the last 2 decades, from about 10% in 1990, to 15% in 2000, and to 32% in 2009/10. Despite poor access to markets and related exploitation from traders, smallholder systems are relatively more competitive than modern piggeries. This is attributed to use of commercial mixed feeds that increase productivity in peri-urban areas, and use of crop residues and forages in rural areas that reduce the cost of production. Piggery is therefore a useful instrument of poverty reduction and gender mainstreaming. Nevertheless, poor hygiene and contamination of pork, abattoirs, and pork joints is greatly reducing the competitiveness of pig sector in Uganda. Besides, the market of live pigs, pork and pork products is segmented and needs to be improved to reward quality and supply to the poor if competitiveness is to increase. Existing development strategies and likely growth scenarios Pig production in Uganda is becoming an enterprise for both the rich and the poor, including the vulnerable groups. In the coming years, the country is likely to see more large-scale investments in pig production. However, the number of smallholder pig producers in the rural and peri-urban areas will continue to increase. Growth in domestic and regional demand for pork is likely to remain higher than growth in local production of pigs. The business as usual scenario of pig production will not satisfy the local demand for pork and pork products in the coming years, unless measures are taken to promote improvements in the pig value chains, particularly for the smallholder pig producers.

23 Uganda smallholder pigs value chain development: Situation analysis and trends 13 Introduction and objectives of the study Agricultural growth is considered to be an important instrument for poverty reduction and can be at least three times more effective in reducing poverty compared to growth from the rest of the economy (de Janvry and Sadoulet 2010). Rural poverty in developing countries, including Uganda can be attributed to the limited creation and facilitation of pro-poor investment options across households, and this continues to hamper agricultural growth (Headey et al. 2010). In Uganda, real growth in agricultural output (food crops, cash crops, livestock and fishing activities) declined from 7.9% in 2000/01 to 0.7% in 2007/08, but later showed signs of recovery to 2.6% in 2008/09 (Republic of Uganda 2010), before declining again to 2.4% in 2009/10, and 0.9% in 2010/11 (MAAIF 2011). Although expected to increase to 3.0 in 2011/12, these growth rates are still below the average population growth rate of about 3.2% per annum and a target rate of 6% per annum that was set in 2003 by the African Union under the Comprehensive Africa Agriculture Development Program (CAADP) 2. The low growth rates highlight the challenge of reversing the declining per capita agricultural production and eradicating poverty in Uganda, a country with 73% of all households (and the majority poor) depending directly on agriculture 3 for their primary livelihood, and where agriculture contributes 22.5% to the total GDP at current prices. Recent studies in Uganda show that access to productive assets, including all types of livestock, may provide rural households with a tremendous opportunity to generate income and to move out of poverty (Ellis and Bahiigwa 2003, Ellis and Freeman 2004, Lawson et al. 2006). Furthermore, Tatwangire (2011) reveals that low levels of productive asset endowments in rural Uganda have made access to livestock an important instrument of poverty reduction. Despite the high level of inequality in access to livestock, Tatwangire (2011) found a clear positive correlation between household welfare and access to additional livestock endowments (including pigs), after controlling for the endogeneity of livestock endowment and the unobserved heterogeneity. This finding is in line with the empirical evidence from previous studies (Riethmuller 2003; Ellis and Freeman 2004; and Kristjanson et al. 2004) that returns to asset endowments, income, and consumption levels of the rural poor can increase significantly, when more emphasis is put on interventions that enhance agricultural growth, accumulation of household s asset portfolios, including livestock, diversification of enterprises, and further growth in productivity and marketing. Livestock and livestock products play an important role in income generation and are source of high quality protein to many households. In Uganda and the rest of the East and Central Africa (ECA) region, production and consumption of livestock and livestock products has been growing rapidly to the extent of creating a livestock revolution (Delgado et al. 1999; Delgado et al. 2001; Kristjanson et al. 2004; Pica-Ciamarra 2005, and; Omamo et al. 2006). However, the food and nutritional security situation is still below the recommended level. For example, the national per capita consumption of meat is only 6 kg, below the 50 kg recommended by the Food and Agriculture Organization (FAO) and World Health Organization (WHO). Similarly, the average caloric intake/person per day in Uganda, though reported to have increased from 1494 in 1992 to 1971 in 2005, is still less than the 2300 calories/person that is 2. CAADP aims at advancing increased agriculture performance through improved policy reforms and institutional development. The focus is to ensure a 6% annual agricultural productivity target and related impact on socio-economic parameters including job creation, food and nutrition security and poverty alleviation. Most African countries (about 30 of them) have signed the CAADP compact that brings out national consensus and commitment in giving agriculture top priority on issues of budgetary allocation and establishment of agriculture and food security investment plans. 3. In 2009/10, the agriculture sector in Uganda employed 66% (8.8 million) of the working population, while by occupation, 60% (8.1 million) of the working population were workers in agriculture and fisheries (MAAIF 2011).

24 14 Uganda smallholder pigs value chain development: Situation analysis and trends recommended by WHO (Republic of Uganda 2010). The number of people who are food insecure 4 in Uganda increased from 12.0 million in 1992 to 17.7 million in Nevertheless, there has been a reduction in poverty level, given that head count poverty levels dropped from 38.8% in 2003, to 31.1% in 2006, and to 24% in There is need for research evidence on why the proportion of households that are food insecure continues to increase despite a reduction in general poverty levels. The national Growth Domestic Product (GDP) per capita was also estimated to be at USD in According to GOU, (2012), the negative effects of internal and external shocks to the Ugandan economy significantly slowed down the economic growth (real GDP growth at market prices) from 6.7% in 2010/11 to 3.2% in the 2011/12 financial year, and this growth falls short of the projections made in the National Development Plan (NDP), and is significantly below the long-term trend level. The government of Uganda, through the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF), is implementing different agricultural development policies and strategies to transform subsistence farming to commercial agriculture. There is an increasing recognition that the implementation of the Plan for Modernization of Agriculture (PMA) during the period of only managed to improve two pillars (agricultural research and agricultural advisory services) out of the seven investment pillars of PMA. In 2010, the government adopted a five-year Agricultural Sector Development Strategy and Investment Plan (DSIP) 2010/ /15 (GOU 2011). The DSIP is in line with the NDP and provides a road map that guides public actions and investments on issues related to agricultural priorities over the next five years. The main objective of the DSIP and NDP is to achieve prosperity for all through improved agricultural productivity, improved rural household incomes and effective food and nutrition security. The government is also committed to promoting 5 private sector investment (based on the private sector-led strategy) in agriculture to: increase production and productivity; improve access to markets of agricultural products; expand exports; eradicate income poverty through value addition and integration, strengthening institutions in the sector, and ensuring sustainable economic growth and development. Improvements in the performance of the public sector are expected to remove constraints that prevent the private sector from investing in different agricultural products value chains, including that of live pigs and pig products, thus, reaching a higher path of economic growth in the country. The main objective of this situation analysis is to assess the conditions within which the pig value chains in Uganda operate. Such a situation analysis is defined as a systematic collection and study of past and present data to identify trends, forces, and conditions with the potential to influence the effective assessment, and in this case, the functioning of pig value chains in Uganda. This study therefore sets out a broader national context for rapid and in-depth pig value chain assessments and analysis at site or small geographical scales through the subsequent research activities. Specifically, this report (i) provides an overview of past trends, current status and the likely future directions in pig value chains in Uganda, and (ii) identifies the underlying challenges and opportunities faced by different actors in the smallholder pig production value chains. The study utilizes primary and secondary data from different sources to generate findings. Data was sourced from: the statistical website of Food and Agriculture Organization of the United Nations (FAOSTAT), the Animal Resources Information System (ARIS) of the Africa Union Inter-African Bureau of Animal Resources (AU IBAR), the Uganda Ministry of Agriculture Animal industry and Fisheries (MAAIF), the Uganda Revenue Authority (URA), and from various household surveys conducted by the Uganda Bureau of Statistics (UBOS), different NGOs, international organization (e.g. IFPRI), and the private sector. The findings of this situation analysis will be useful to ILRI and other stakeholders that are interested in developing piggery in Uganda. In particular, the management of the ILRI SPVCD project will use the findings to select appropriate 4. Food security exists when all people, at all times, have physical, social and economic access to sufficient, safe and nutritious food which meets their dietary needs and food preferences for an active and healthy life (FAOSTAT website). 5. Several strategic enterprises were compiled by SAKSS PMA Secretariat using scores based on NAADS gross margin study and statistics from different UBOS and IFPRI survey data sets (See Republic of Uganda (2010), page ). These are the enterprises being promoted by MAAIF through its DSIP in different agricultural production zones for a period In the case of livestock, the priority enterprises do not include piggery, but rather the dairy cattle, beef cattle, goats, poultry, and apiculture. Pig production appears not to be among the government priority enterprises.

25 Uganda smallholder pigs value chain development: Situation analysis and trends 15 research approaches (toolkits) to the rapid pig value chain assessment in the country. The aim of the SPVCD project is to improve livelihood security, incomes and assets of rural and urban smallholder pig producers, particularly women. This can only be possible when pig farmers and all actors in pig value chain are helped to increase productivity that is sustainable and economically feasible in terms of low risk and improvement in market access. Keeping pigs can provide affordable insurance to risks such as: income uncertainty, liquidity constraints, and market imperfections that loom large in rural areas. Like other types of livestock, the stock of pigs can be accumulated in good times, and liquidated in bad times to smooth fluctuations in income and consumption (Deaton 1992a; Deaton 1992b; Sauerborn et al. 1996). Pigs can therefore serve as a reliable source of cash, and also help farmers to diversify risk and to create wealth. This report provides an overview and presents the analysis under five themes namely; consumption and animal resources; production systems; market exchanges, demand and supply of pig products; farm management practices, including animal health, and; the functioning of pig value chains in Uganda. Livestock subsector in Uganda The agricultural sector (food and cash crops, livestock and fisheries) is estimated to contribute up to 23.8% of the GDP, and is an important sector of the economy generating about 48% of export earnings (Republic of Uganda 2010, MAAIF 2011). Livestock contributes about 15% of the agricultural GDP (FAO 2005). Recent statistics reveal that during a one year period between 2009 and 2010, there has been a 3% increase in the number of livestock and poultry in Uganda (MAAIF 2011). Such an increase is attributed to the routine interventions in the livestock subsector, which have not only helped to control animal diseases, but also lead to improvement in livestock production systems. About 4.5 million households (70.8%) in Uganda rear at least one kind of livestock or poultry (UBOS and MAAIF 2009). According to MAAIF (2011), the average land holding excluding communal landholdings allocated to livestock rearing is reported to be about 2.2 hectares, and is highest (3.5 ha) in the Central region and lowest (1.2 ha) in the Eastern region. Table 1 shows the trend in livestock population from the 1980s to 2008 showing high growth rates in ruminant livestock and pig population between 2002 and The national herd size of cattle is estimated to be 11.4 million, of which 10.6 million (93.6%) are of indigenous breeds, while 1.52 million comprise milking cows (UBOS and MAAIF 2009). Table 1 further shows an increase in the number of different categories of livestock and poultry in Uganda in the past two decades. The number of other livestock in 2008 Livestock Census was estimated to be: 12.5 million goats; 3.4 million sheep; 3.2 million pigs, and; 37.4 million chicken flocks, of which 2.5 million represent the exotic layers. It is therefore evident that the number of pigs increased significantly, from 0.19 million in 1980 to 1.7 million in 2002 (UBOS 2007), and to 3.2 million in Table 1. Trends in livestock population (values in 000 ) in Uganda Species Period (in years) Cattle ,409 Sheep and goats ,863 Pigs Poultry 13,200 18,960 26,974 32,638 37,444 Sources: FAO (2005); MAAIF (2009). Pig production in Uganda is widespread and appears to be increasing at a high rate. The National Livestock Census (NLC) report (see Table A12) reveals that slightly less than one-fifth (i.e. 17.8%) of the households in Uganda owned pigs in It is estimated that 1.1 million households produce pigs, with an average herd size of 2.8 pigs/household. There are however differences in the regional distribution of pigs as indicated in Table 2.

26 16 Uganda smallholder pigs value chain development: Situation analysis and trends Table 2. Pigs and ruminant livestock population (000) in 2008 Pigs Cattle Goats Sheep Population Population Population Population Region (000 ) % ( 000 ) % ( 000 ) % ( 000 ) % Central Eastern Northern Western Karamoja Total , , Source: National Livestock Census report (2009). The Central region has the highest pig population (40%), followed by Western (25%), Eastern (22%), Northern (11%) and the Karamoja zone (2%) (UBOS and MAAIF 2009). The regional distribution of cattle and goats is highest in the Western region, while the highest population of sheep is shown to exist in Karamoja region. Figure A1 and A2 in the annex present detailed information on the spatial distribution of proportion of households owning pigs and the corresponding distribution of pig numbers in Uganda. The current human population of Uganda is estimated to be 34,612,250, of which more than 773,463 reside in Kampala. Currently, Uganda s average annual growth rate in population is 3.3%, while the average population density is about 123 persons/km 2. The increase in human population has boosted demand for services and goods including foods of animal origin such as pork. No doubt, domestic and regional demand for animal products is also growing, and this has combined with low production to increase prices of livestock products. Furthermore, there is an indication that the number of actors in the livestock value chains is increasing probably due to good general policy environment that is in place. The Government of Uganda has been promoting various interventions that enhance: disease control; genetic improvement; investment in commercial livestock rearing farms; improved livestock nutrition; improved marketing of livestock products; support of the training and delivery of advisory services, and; support of research in beef production (UBOS and MAAIF 2009). The Government is nevertheless committed to the review and implementation of good policies and legislations that can transform and modernize agriculture, including the livestock sector in Uganda. Despite these policies, piggery is not among the priority livestock enterprises in the country s strategic plan.

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28 18 Uganda smallholder pigs value chain development: Situation analysis and trends Different forms of livestock and pig meat products A recent study (Jagwe et al. 2012) lists different forms of livestock products that are consumed in Uganda. These range from: (i) beef (i.e. bone in large piece of meat, chops for roasting or frying, ground or minced beef and offals); (ii) chicken (live birds, dressed chicken, frozen and fresh); (iii) eggs (loose eggs and packaged eggs); (iv) goat meat (large piece and chops); (v) mutton, (vi) pork, and; (vii) dairy products (raw milk, pasteurized milk, powdered milk, butter, ghee, and yoghurt). In the case of pork, there are a limited number of product forms, and they include: live pigs, large pieces (usually the thighs and chest) of pork, and pork chops that are cut from large pieces to allow easy cooking. Other pork products sold in the market include: sausages, roasted or fried pork chops and ribs. Livestock products in general, including pig products, are sold in different retail outlets in the country. These are abattoirs, roadside butchery, roadside outlets, wet market (mainly sell live animals), small retail shops, and supermarkets. The rich tend to buy livestock products in larger quantities at a time from outlets such as abattoirs, supermarkets, and roadside butcheries all of which generally rank highly in terms of quality. Conversely, product quality scores of outlets such as small retail shops, ready to eat outlets, and roadside outlets are relatively low and are highly utilized by consumers in the lower income brackets. Jagwe et al. (2012) further reports the minimum and maximum retail price for each of the above mentioned livestock products. In the case of pig products, the average retail price in Uganda shillings (UGX)/kg is reported to be 4800 for large piece of pork, 5500 for ready to roast/fry chops, 8500 for sausages, 11,000 for ready to eat pork ( Muchomo ) that is often consumed by people with higher income.

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30 20 Uganda smallholder pigs value chain development: Situation analysis and trends Consumption and expenditures: Current status and trends The production and consumption of meat and other foods of animal origin are one of the key six core livestock domains (Ciamarra et al. 2012). In addition to livestock prices, the other core livestock domains may include: livestock inventory; animal health and disease; livestock production; feed for livestock, and; milk production. When it comes to pig production in Uganda, information on most of these domains is limited. In order to fill this gap, the analysis in this situation analysis employs FAO food supply data, other available national datasets, and evidence from various studies. It is this information that is used to describe the current (baseline) status and trends of various indicators of performance in pig value chains in Uganda. Combining FAOSTAT food supply data and parameters from other data sets is particularly useful in assessing the national undernourishment status. This section therefore provides an overview on the extent to which there has been changes in pork consumption; role of pork in the diets; role of pork in overall expenditure; changes in preference, and; policies that are in place. The supply of livestock products is presented in terms of quantity in units of kg per capita per year, and represents the amount of food available for human consumption (and not what is actually consumed) in a reference period of three years for each individual in the population as a whole. The tables and figures below show descriptive statistics of livestock consumption data on bovine meat and milk, pork, goat meat, and mutton. Per capita consumption and expenditure on pig meat products A recent study in the beef sector estimates that the per capita consumption of pork in Uganda is 3.2 kg/person per year; total number of pigs slaughtered are 1,885,000, with an equivalent weight of carcass of 113,100 t and the full pig carcass weight of about 60 kg (Agriterra-EKN 2012). There are about six abattoirs in Kampala and Wakiso districts, but most of these specialize in cattle and other small ruminants. Only one abattoir called Wambizzi Cooperative Society Ltd specialize in the slaughter of pigs. The three major abattoirs in the city include: City Abattoir Ltd operated by the Kampala City Council (KCC); UMI Ltd, and Nsooba Slaughter House Ltd. The average number of cows slaughtered at the Kampala City Abattoir has increased to animals a day; yet its capacity is much lower at animals (Agriterra-EKN 2012). Nevertheless, the national per capita consumption of meat is still low (at about 6 kg) compared to the 50 kg recommended by the Food and Agriculture Organization and World Health Organization. Spatial detail of pork consumption in Uganda is summarized in Figure A10, and shows that the average pig meat consumption in Uganda is very high (above 750 kg/km 2 per year) in urban areas of major districts that include: Kampala, Entebbe, Kira, Jinja, Iganga, Busia, Mbale, Tororo, Soroti, Lira, Gulu, Arua, Hoima, Fortpotal, Kasese, Mbarara, Masaka, Rakai, Kabale, Kisoro, Rukungiri and Bushenyi. Efforts to meet local needs of animal protein may require a significant increase in livestock productivity by over 4.2% a year, from the current 3%. The failure to achieve this increase in animal population and supply of livestock products (including pig products) implies that the demand for beef and pork will overwhelm the country and may force the country to resort to beef imports that certainly will result in increased cost of living. Here we analyse consumption

31 Uganda smallholder pigs value chain development: Situation analysis and trends 21 data of FAOSTAT in order to understand the trend of per capita consumption of different animal products in Uganda. It must be said however that FAOSTAT consumption data presents the amount of food/livestock products that are only available for consumption, but not necessarily what is actually consumed. Figure 1 shows the trend in the amount of all livestock products available for human consumption in Uganda for a period between 1961 and The average per capita consumption of various livestock products is indicated. Livestock products include: Bovine meat, mutton and goat meat, pork, poultry meat, other types of meat, offals, fresh water fish, whole milk and eggs. The average per capita consumption is highest for milk, followed by freshwater fish, bovine meat, pig meat, poultry meat, edible offals, mutton and goat meat, other types of meat, eggs, honey, and is least for butter and ghee. Pork therefore ranks fourth in terms of per capita consumption. The amount of pork consumed per capita increased steadily between 1961 and 1986, it then increased sharply between 1987 and 1991, before attaining a steady increase up to The consumption level of pork appears to be matching the consumption level of bovine meat, a major animal product in Uganda. Figure 1. Trend of average per capita consumption of all livestock products in Uganda Source: FAOSTAT (2012). Figure 2 presents the assessment of per capita consumption of livestock meat products only (i.e. bovine meat, mutton and goat meat, pig meat, poultry meat, other types of meat, and freshwater fish). Fresh water fish is seen to be the most consumed, followed by bovine meat, pork, poultry meat, mutton and goat meat, and lastly other types of meat, which may also include game meat. The level of per capita consumption of fresh water fish increased sharply between 2003 and 2007, but it is still less compared to consumption levels of 1970s. On the contrary, the per capita consumption of bovine meat is decreasing steadily since It is only pig meat that continues to register a steady increase in the level of per capita consumption. The level of consumption per capita of poultry meat, mutton and goat meat, and other types of meat has been constant during the period between 1961 and Figure 2. Trend of per capita consumption of livestock meat products (without edible offals, eggs, milk, freshwater fish) in Uganda. Source: FAOSTAT (2012).

32 22 Uganda smallholder pigs value chain development: Situation analysis and trends Figure 3 displays only the trend of per capita consumption of livestock meat products (with the exception of edible offal, eggs, milk, and freshwater fish). Note that after 1986, there was a significant decrease in the rate at which the per capita consumption of bovine meat was decreasing; the per capita consumption of pork registered the highest increase; the per capita consumption of mutton and goat meat maintained a steady decrease, while it is only the other types of meat that continued to decrease. Figure 3. Trend of per capita consumption of livestock meat products (without edible offals, eggs, and milk) in Uganda. Source: FAOSTAT (2012). The Government of President Yoweri Museveni came to power in 1986, and in 1987 started to promote significant policy reforms for economic recovery. Structural reforms were adopted, including liberalization of agricultural input and output markets, trade and investment (FAO 2005). It is these reforms, combined with the macro-economic stability at the time that clearly altered the trend of per capita consumption of livestock meat products as a result of improved household level of income and more affordable market prices. For more details on the statistics and trend of per capita consumption of livestock products in Uganda for a period between 1997 and 2007, please see Table A1 in the Annex. Role of animal products in human diets The Uganda Census of Agriculture 2008/2009 reveals that maize, beans, bananas, cassava, and sweet potatoes are the major crops that are frequently produced, sold and consumed in the country (van Campenhout et al. 2012). Here, a comparison is made using FAOSTAT data, between the five major crops and major animal products. The findings highlight the relative contributions to the total amount and the trend of each of the food items in terms of quantity supply, energy supply, protein supply, and fat supply. Table 3 presents percentage contributions of each food item to the food and energy supply for the year 1999 and The percentage contribution of pork to food remained constant at 1.2% in the past 10 years, its per capita energy contribution however increased from 3.5 to 4% in the past 10 year period. The higher contribution of pork to energy consumption compared to beef (i.e. 2.1 to 2.2%) can be explained by higher content of fat in pork, but the difference may not be very big. Table 3 further shows that unlike fresh water fish and milk whose role in the supply of food and energy increased between 1999 and 2009, the percentage contribution of bovine meat, eggs, mutton and goat meat and poultry either appear to have remained constant or reduced in the same period. In the case of crop products, it is only cassava that registered an increase in the contribution to food (31 34%) and energy ( %). The percentage contribution of each of the bananas, beans, maize and sweet potatoes also reduced between 1999 and 2009.

33 Uganda smallholder pigs value chain development: Situation analysis and trends 23 Table 3. Proportion of per capita supply of food and energy for Uganda in 1999 and 2009 Item Quantity (t) Proportion (%) of food supply in Uganda Quantity (g/capita per day) Energy (kcal/capita per day) Bovine meat Eggs Freshwater fish Milk, whole Mutton and goat meat Pork Poultry meat Bananas Beans Cassava Maize Sweet potatoes Total Note: Computed by author based on FAO food supply data (FAOSTAT 2012). Table 4 shows that the percentage contribution of pig meat to the per capita protein supply increased from 3.1% in 1999 to 3.6% in Pork therefore ranks fourth in terms of its contribution to per capita protein consumption, after fish, milk and beef. The contribution to fat supply is the highest for pork followed by milk, beef, maize, freshwater fish, beans and sweet potatoes. This, although still highest for pork, decreased reduced from 31.3% in 1999 to 30.4 in 2009 implying some slight change of diet of food rich in fat in the last 10 years. Table 4. Proportion of per capita supply of protein, and fat for Uganda in 1999 and 2009 Proportion (%) of food supply in Uganda Item Protein supply quantity (g/capita per day) Fat supply quantity (g/capita per day) Bovine meat Eggs Freshwater fish Milk, whole Mutton and goat meat Pig meat Poultry meat Bananas Beans Cassava Maize Sweet potatoes Total Note: Computed by author based on FAO food supply data (FAOSTAT 2012). Source: FAOSTAT (2012). Using FAOSTAT data, the percentage contribution of each of the animal products to food, energy, protein and fat are plotted in order to further understand changes in the trends. Figure 4 shows that among the animal products, milk contributes most to the food supply in Uganda, followed by fresh water fish, bovine meat, pig meat, poultry meat, mutton and goat meat, and lastly eggs.

34 24 Uganda smallholder pigs value chain development: Situation analysis and trends Figure 4. Trend in supply of food by animal products in Uganda. The role of milk increased drastically between 2001 and 2003, but afterwards remained more or less constant up to There has also been an increase in the percentage contribution of fresh water fish in the past 10 years. In contrast, the percentage contribution of pork, beef, mutton and goat meat and chicken has been more or less stable, implying a constrained supply of these products. Figure 5 indicates that the contribution of pig meat to the supply of energy among all the animal products is second highest after that of milk. This is then followed by fresh water fish, bovine meat, mutton and goat meat, poultry meat and eggs. The role of pig meat, milk and fresh water fish in the energy supply is noted to be increasing slightly, while that of each of other animal products is reducing. Figure 5. Trend in supply of energy by animal products in Uganda. Source: FAOSTAT (2012). When one considers the role in the supply of proteins, Figure 6 presents the trend and relative contributions of animal products. The percentage contribution of per capita supply of proteins is highest for fresh water fish, followed by milk, bovine meat, pig meat, mutton and goat meat, poultry meat, and eggs. And while the trends of the protein contribution for fresh water fish and milk are noted to be on the increase, the trend of bovine meat, pig meat and all other animal products is seen to be either constant or increasing at a very low rate. Figure 6. Trend in supply of protein by animal products in Uganda. Source: FAOSTAT (2012).

35 Uganda smallholder pigs value chain development: Situation analysis and trends 25 Figure 7 summarizes the trends in the role of animal products in the supply of fat. Pig meat has the highest percentage contribution to the per capita supply of fat. It is followed by milk, bovine meat, fresh water fish, mutton and goat meat, poultry meat, and eggs. The supply of fat through the consumption of pork increased slightly between 2001 and 2004, and has since been constant up to This slight increase in fat supply must be taken into account particularly in the interest of the population with potential heart problems. In case the consumption of pork increases, there is need to consider the possibility of selecting animals with more lean meat to overcome potential health problems. For more details on the per capita supply of food, protein and fat see Tables A2 and A3 in the annex. Figure 7. Trend in the supply of fat by animal products in Uganda. Source: (FAOSTAT FAO Statistics Division 2012). Patterns of livestock resources The pattern of distribution of livestock resources in Uganda across income class, rural/urban, or other relevant grouping (gender and age, especially young children) are presented based on the two cross-sectional national data sets collected by IFPRI in the year 2000/01, and UBOS in the year 2009/ The UBOS dataset forms the second round of the Uganda National Panel Survey (UNPS). The first round of this panel data is based on the Uganda National Household Survey 2005/06. The two rounds of the survey collected data on socio-economic characteristics at both household and community levels and are rich with information on agricultural crop and livestock production. Noteworthy is that the UNPS is carried out annually, over a twelve-month period on a nationally representative sample of households. The data is therefore able to accommodate vital issues of seasonality associated with the composition and expenditures on consumption. The survey was conducted in two visits and captures agricultural outcomes associated with the two cropping seasons of the country. Each household was interviewed twice in two visits that are six months apart. The survey covered all the 34 EAs visited by the UNHS 2005/06 in Kampala District, and 72 EAs (58 rural and 14 urban) in each of the regions: (i) Central with the exception of Kampala District; (ii) Eastern; (iii) Western, and; (iv) Northern. According to UBOS, (2012), equal probability, and with implicit stratification by urban/rural and district (in this order), was employed to select the UNPS EAs from each stratum of the UNHS 2005/06 EAs, except for the rural portions of the ten districts that were oversampled by the UNHS 2005/06. In these ten districts, the probabilities were instead deflated to bring them back to the levels originally intended. The UNPS strata therefore include: (i) Kampala City, (ii) Other urban areas, (iii) Central rural, (iv) Eastern rural, (v) Western rural, and (vi) Northern rural. The IFPRI primary dataset was collected in 2001 under the project of Policies for Improved Land Management in Uganda. This IFPRI survey covered two thirds of Uganda including Southwest, Central, and Eastern and some areas in Northern Uganda. A stratified sampling procedure was employed based on a classification of Uganda s territory according to agricultural potential, market access and population density. The study covered a total of 450 households in 107 communities. 6. The UNPS 2009/10 collected data on among others: livestock ownership, livestock expenditure, livestock income, production and sale of livestock products. The data is therefore rich with information on the dynamics of household livestock ownership, earnings from livestock sales, expenditure on animal purchases, and other expenditures necessary to raise animals (UBOS, 2012). The UNPS survey started in 2009/10 and keeps track of about 3,123 households that are distributed over 322 enumeration areas (EAs) out of the selected 783 EAs that were visited by the Uganda National Household Survey (UNHS) in 2005/06.

36 26 Uganda smallholder pigs value chain development: Situation analysis and trends Proportion of households that raise or own animals in Uganda The National Livestock Census (NLC) Report 2008 (p. 57 and p. 170) reports that the overall proportion of households that keep pigs in Uganda is 17.8%. Results of the NLC report are summarized in Table A12 (in the annex). They indicate that about 1,135,130 households in Uganda were rearing pigs in 2008, and of these, the majority (23%) were in the Central region, followed by 20.6% in the Western region, 16.3% in the Eastern region and only 9.3% in the Northern region. The same regional distribution is true for the number of pigs reared (as earlier indicated) with the mean herd size of 0.5 pigs among all households, and 2.8 pigs among households owning pigs (UBOS and MAAIF 2009). The detailed information on the spatial distribution of proportion of households owning pigs and the corresponding distribution of pig numbers in Uganda are presented in Figure A1 and A2 in the annex. Further analysis (see results in Table 5) of the Uganda Bureau of Statistics data (UBOS/UNPS 2009/10) indicates that a larger proportion of households (64.5%) in Uganda keep poultry, other related birds, rabbits and bee hives. About 60% of all households keep small animals (goats, sheep, pigs etc.), while it is only 37.5% of all households that keep cattle and other large animals such as donkeys and mules. Table 5. Proportion of households that raised or owned animals during the 12 months, 2009/10 Cattle/pack animals in the last 12 months Small animals in the last six months Poultry and others in the last three months Raised or owned animals Freq. Per cent Freq. Per cent Freq. Per cent Yes No Total Source: Computed by author, based on UNPS 2009/10 survey data. Note: (i) pack animals includes donkeys and mules; (ii) small animals include goats, sheep, and pigs; (iii) others include such animals as rabbits, turkeys, ducks, geese and other birds, and bee hives. Those figures suggest that a substantial number of households rear different types of animals as part of their livelihood strategies. It is also widely agreed that women in Uganda participate actively managing livestock species, especially small animals that are raised in the form of backyard activities. Therefore, interventions that can specifically target women with improved livestock husbandry practices should be able to increase not only production, but also consumption level of foods of animal origin, and this is vital for poverty reduction and economic growth. Number of livestock owned, sold, and slaughtered by gender in the last 10 years The analysis of livestock resources among Ugandan households that keep at least one of the various animals (i.e. cows, donkeys, mules, sheep, goats, pigs, chicken, other domesticated birds, and rabbits) was conducted for the year 2000/01 and 2009/10. Results of this analysis are summarized in Tables 6 and 7 (below). Note that the data sets employed are cross-sectional, and allows only the comparison sample means of different households. Each table summarizes the number of animals owned at the end of the year, and the number of animals sold and slaughtered within a year. Table 6. Number of livestock owned, sold, and slaughtered by gender in 2009/10 Number owned Number sold within Number slaughtered Household Animal type at the end of 12 months the past 12 months in the past 12 months head s sex Mean SD N Mean SD N Mean SD N Male Cows Donkeys Mules Sheep Goats Pigs Chicken Other birds

37 Uganda smallholder pigs value chain development: Situation analysis and trends 27 Household head s sex Animal type Number owned at the end of 12 months Number sold within the past 12 months Number slaughtered in the past 12 months Mean SD N Mean SD N Mean SD N Female Cows Donkeys Mules Sheep Goats Pigs Chicken Other birds Rabbits Total Cows Donkeys Mules Sheep Goats Pigs Chicken Other birds Rabbits Notes: (i) Other birds include: turkeys, ducks, geese and pigeons, (ii) Figure in the table include Means, Standard Deviations and Frequencies, (iii) Statistics in the Table were computed by Author based on UBOS 2009/10 round of UNPS survey. Table 7. Number of livestock owned, sold, and slaughtered by gender in 2000/01 Number owned at the end of 12 months Number sold in the last 12 months Number slaughtered In the last 12 months Household head s sex Animal type Mean SD N Mean SD N Mean SD N Male Cows Sheep Goats Pigs Donkeys Chicken Other birds Rabbits Female Cows Sheep Goats Pigs Donkeys Chicken Other birds Rabbits Total Cows Sheep Goats Pigs Donkeys Chicken Other birds Rabbits Notes: (i) Other birds include turkeys, ducks and pigeons, (ii) Figure in the table include Means, Standard Deviations and Frequencies, (iii) Statistics in the table were computed by Author based on IFPRI 2001 data on Policies for Improved Land Management in Uganda.

38 28 Uganda smallholder pigs value chain development: Situation analysis and trends It can be seen from Table 6 that the overall average number of animals owned by livestock keeping households in 2009/10 was highest (5.2) for cows followed by that of goats (3.5); pigs (0.8); sheep (0.7), and is least for rabbits (0.1). Similarly, livestock keeping households keep on average more (8.6) chicken birds compared to 0.7 of other poultry birds. And while this pattern is similar to what used to be the case ten years ago (in 2000/01), the average numbers of animals owned appears to have changed slightly. For instance, Table 7 reveals that the average number of cows owned were 3.5 followed by 3.8 for goats; 1.8 for sheep; 1.7 for pigs; 2.1 for rabbits, and; 0.6 for donkeys. In the last 10 years, therefore, the position of pigs as a priority livestock enterprise improved from a fourth position to a third position, after cows and goats. In terms of gender, the gap between male-headed and female-headed households is shown to be reducing with time. However male-headed households continue to own more animals on the average than is the case with female-headed households. For example, while male-headed livestock keeping households owned on average 3.6 cows in 2000/01; female-headed counterparts owned 2.4 cows. Similarly, male-headed livestock keeping households owned 1.8 pigs on average, compared to 0.8 pigs of female-headed households during the same time. Ten years later (in 2009/10), we see that male-headed livestock keeping households still own: more (5.4) cows compared to 4.8 of female-headed households; slightly more (0.8) pigs compared to 0.7 pigs of female-headed; more goats (3.6) compared to 3.3 goats of female-headed households; more chicken (9.0) compared to 7.4 chicken of female-headed households, and; more other birds (0.7) compared to 0.5 of female-headed households. However, the number of sheep and rabbits appear to be the same across male-headed and female-headed livestock keeping households. Regardless of gender of the household head the number of cattle/household increased between 2000/01 and 2009/10, whereas the average number of pigs appears to have reduced during the same period. Furthermore, the number of female-headed households that are engaged in livestock sector is much less compared to male-headed households. This can be attributed to constraints that tend to affect female livestock farmers more than is the case for male farmers. The numbers of animals sold and slaughtered in a year are also summarized in Tables 6 and 7. The number of pigs sold in 2009/10 is shown to be on average 0.2 across all livestock keeping households. This is however more (0.3) among male-headed households compared to 0.2 in households that are female-headed. The same pattern in 2009/10 is true for all other animals when it comes to numbers sold or slaughtered (see Table 6), and this has not changed much even in the past 10 years (see Table 7 for similar statistics in 2000/01). Households seem to prefer selling live pigs to slaughtered pig carcases. Very few households slaughter pigs on the farm. Proportion of households that own, sell, and slaughter pigs In this section, descriptive statistics are presented to highlight the changes in the number of households that engage in pig ownership, sale, and slaughter in Uganda. The question is whether the pattern of participation has changed in the past years. Results in Table 8 show that the overall proportion of livestock farm households that own pigs increased from 10% in 1990, to 20.9% in 2000/01, and to 30.9% in 2009/10. In particular, the proportion of maleheaded households owning pigs was 21.4% in 2000/01, compared 14.7% of female-headed households. However, these proportions increased in the last 10 years. About 30.6% of male-headed households owned pigs in 2009/10, compared to 31.9% of their female-headed counterparts. Results in Table 8 further reveal that 12% of male-headed households and 14.7% of female-headed households participated in the sale of pig in 2000/01. Ten years later the proportion of households that sold pigs reduced to 9.2% for male-headed households and 7.7% for female-headed households in 2009/10. Few households appear to be engaged in slaughtering pigs. Overall, this proportion reduced from 2% in 2000/01 to 0.5% in 2009/10. In terms of gender, the proportion of male-households that slaughtered pigs on farms were 0.6 in 2009/10, compared to 0.3% of their female-headed counterparts.

39 Uganda smallholder pigs value chain development: Situation analysis and trends 29 Table 8. Proportion of households that owned, sold, and slaughtered pigs, Particulars / /10 Freq. % Freq. % Freq. % Male headed Households that owned pigs Households that sold pigs Households that slaughtered pigs Total number of observations (N) Female-headed Households that owned pigs Households that sold pigs Households that slaughtered pigs Total number of observations (N) Overall Households that owned pigs Households that sold pigs Households that slaughtered pigs Total number of observations (N) Notes: (i) Figure in the table include frequencies and percentages; (ii) Statistics in the Table were computed by author based on UBOS 2009/10 round of UNPS survey. It is therefore evident that the proportion of households engaged in pig rearing has increased in the last two decades, but this is more pronounced among female-headed households in the last decade. Similar pattern is however yet to be seen in household decisions to sell pigs. Most farmers are not slaughtering pigs, implying that pigs are sold alive to traders who take them to the market. The summary of household proportion that owned, sold, and slaughtered pigs between 1990 and 2010 across the regions of Uganda is provided in Table 9. The proportion of households that owned pigs is shown to have increased from 10% in 1990 to 30.9% in Table 9. Proportion of households that owned, sold, and slaughtered pigs by region, Particulars in the past 12 months 1990 Different regions of Uganda Kampala area Central Eastern Northern Western Overall Households that owned pigs (%) 21.1 (19) 6.0 (15) 8.3 (2) 10.5 (9) 10.0 (45) Total observation (N) /01 Households that owned pigs (%) 37.8 (34) 18.0 (45) 20.8 (5) 11.6 (10) 20.9 (94) Households that sold pigs (%) 26.7 (24) 8.0 (20) 12.5 (3) 9.3 (8) 12.2 (55) Households that slaughtered pigs (%) 4.4 (4) 1.2 (3) 8.3 (2) 0 (0) 2.0 (9) Total observation (N) /10 Households that owned pigs (%) 38.5 (5) 56.0 (177) ((((177) 28.8 (105) 14.2 (59) 30.1 (103) 30.9 (449) Households that sold pigs (%) 15.4 (2) 20.3 (64) 5.48 (20) 4.1(17) 7.0 (24) 8.6 (127) Households that slaughtered pigs (%) 0.0 (0) 1.0 (3) 1.1 (4) 0.0 (0) 0.0 (0) 0.5 (7) Total observation (N) Notes: (i) Statistics in the Table were computed by Author based on IFPRI 2001 and UBOS 2009/10 round of UNPS survey data; (ii) Figures in the parentheses denote frequencies In 1990, a large proportion of households (21.1%) kept pigs in the Central region of Uganda, followed by 10.5% in the Western region, 8.3% in the Northern region, and this was least (6%) in the Eastern region. It is clear that the number of households engaged in pig production increased substantially in the following 10 years. For example, the proportion

40 30 Uganda smallholder pigs value chain development: Situation analysis and trends of households owning pigs in 2000/01 is shown to have been highest (37.8%) in the Central region and least (11.6%) in Western region. The proportion of households that sold pigs was highest (26.7%) in Central region, when compared to 12.5% in Northern region, 9.3% in Western region, and 8% in Eastern region. There has been shift in the number of households rearing pigs in the last decade (2001 to 2010). It is evident that in the Eastern and Western regions there was a significant increase in the number of households rearing pigs, whereas the number of households rearing pigs reduced in the Northern region. The decline in the number of households rearing pigs in the Northern region can be attributed to rampant break-outs of African swine fever and residual effects of the war by the Lord s Resistance Army. Table 9 further shows that in 2001, the proportion of households that reported slaughtering pigs on their farms was highest (8.3%) in the Northern region, but in 2010 there were no differences among regions, with less than 1% of the households slaughtering pigs. The proportion of households that sold and slaughtered pigs is very low when compared to households that own pigs. This discrepancy can also be attributed to data limitations due to a probable underreporting and the way questions were asked during the field survey. In the same line, Table 9 indicates that the proportion of households owning pigs in 2009/2010 is highest in the Central region (56%), followed by 30.1% in the Western region, 28.8% in the Eastern region and 14.2% in the Northern region of Uganda. In Kampala area alone, 13 livestock keeping households were interviewed. Out of these, only 5 (38.5%) households own pigs, while 2 (15.4%) households sold some pigs. Still, the Central region is shown to have a large proportion (20.3%) of livestock keeping households that sell pigs when compared to other regions. Pig trends in Uganda To the extent that the proportion of households keeping pigs continues to increase, the number of pigs in Uganda is also reported to be on the increase. Figure 8 (below) shows that the number of pigs has increased steadily from 1991 to This is with exception of 2002, where the reported decrease can be attributed to poor sampling and underreporting by respondents during the Population and Housing Census (PHC). Figure 8. Trends (000) in the number of pigs in Uganda. Source: National Livestock Census Report (2008). National statistics further reveal that pig numbers in Uganda increased from 0.67 million in 1991, to 1.4 million in 1997, to 1.6 in 2001, to 2.3 million in 2005/06 and to 3.2 million in 2008 (UBOS 2007, UBOS and MAAIF 2009).It is therefore evident that the number of pigs is increasing steadily, and so is the number of households engaged in pig rearing. And while this trend is widespread throughout the country, significant increase is taking place in the Central, Eastern and Western regions of Uganda. In 2005/06, about 0.8 million (18.3%) agricultural households out of the total 4.2 million agricultural households in the country reared pigs (UBOS 2007). It is this large number of pig rearing households that have increased pig production and pork consumption in areas and regions with large number of pigs.

41 Uganda smallholder pigs value chain development: Situation analysis and trends 31 Table 10 presents the regional distribution of households with pigs, the number of pigs, which concurs with the findings in Tables 6, 7, and 8. The number of agricultural households and number of pigs (and probably pork consumption) is shown to have been highest (43.2 and 48.9%, respectively) in the central region of Uganda; followed by Eastern region (24.3% and 22.6%); Western region (24.5 and 20.3%), and; were least (8 and 8.1%) in the Northern region. Table 10. Number (000) of households with pigs, and number of pigs (000) in Uganda Region Agricultural households with pigs Number of pigs UNHS 2005/06 (000) Number (000) Percentage Number (000) Percentage Central Eastern Northern Western Total Source: Uganda National Household Survey 2005/2006: Report on the Agricultural Module: The average number of pigs owned and sold among livestock keeping households in rural and urban areas of Uganda is summarized in Table 11 (below). It can be seen that livestock keeping households own at least 0.8 pigs and sell on average 0.2 pigs. By contrast, male-headed households own 0.8 pigs and sold 0.3 pigs, while female-headed households own 0.7 pigs and sold 0.2 pigs on average. This distribution appears not to be significantly different across male-headed and female-headed households. Table 11. Number of pigs owned and sold by urbanization and sex of household head, 2009/10. Number of pigs owned at the end of the past 12 months Number of pigs sold within the past 12 months Sex of the household head Sex of the household head Regional identifier Male Female Total Male Female Total Rural Mean sd N Urban Mean sd N Total Mean sd N Notes: (i) Figure in the table include Means, Standard Deviations and Frequencies; (ii) Statistics in the Table were computed by Author based on UBOS 2009/10 round of UNPS survey. The average number of pigs owned is highest (1.1 pigs) for livestock farmers in urban areas than is the case (0.7 pigs) for farmers in rural areas. In urban areas, female-headed farm households own 1.2 pigs that is slightly more than that (1.0 pigs) of male-headed households. Women also sell about 0.4 pigs on average that is more than 0.1 pigs sold by men on average. Table 11 further indicates that the number of pigs owned by male and female farmers is lower in rural areas when compared to the case in urban areas. However, when it comes to pig sales, male-headed households appear to sell more (0.3) pigs in rural areas than their male counterparts in urban areas. Conversely, it is the female-headed households that sell more (0.4) pigs than their female-headed counterparts in rural areas. These findings suggest that pig farmers in urban areas own slightly larger numbers of pigs than their rural based pig keeping farm households, contrary to popular views about the many pig numbers on rural farms. Furthermore, when it comes to the number of pigs owned and sold, and also the percentage of pigs sold compared to the total number of animals owned, pig keeping female-headed farm households appear to be out-performing their male-headed counterparts. This is true whether households are based in rural areas or urban areas in the country.

42 32 Uganda smallholder pigs value chain development: Situation analysis and trends Table 12 represents a summary of the average number of pigs owned and sold across the four regions of Uganda in 2009/10. These were computed based on livestock keeping farm households that were 13 in Kampala area; 315 in Central region; 364 in Eastern region; 414 in Northern region and; 342 in Western region. The average number of pigs is highest (1.8 pigs) in Kampala area, followed by Central region with an average of 1.6 pigs, the Eastern and Western regions have similar level (0.7) of pig endowments, while the number of pigs owned is least (0.2 pigs) in Northern region. Table 12. Number of pigs owned and sold by region and gender in 2009/10 Regional identifier Statistics Number of pigs owned at the end of the past 12 months Sex of household head Number of pigs sold within the past 12 months Sex of household head Male Female Total Male Female Total Kampala area Mean sd N Central without Kampala Mean sd N Eastern region Mean sd N Northern region Mean sd N Western region Mean sd N Overall Notes: (i) Figure in the table include means, standard deviations and frequencies. (ii) Statistics in the Table were computed by author based on UBOS 2009/10 round of UNPS survey. In terms of gender differences, we see that male and female-headed farm households in Kampala area own almost equal number (0.3) of pigs. The number of pigs owned by female-headed farm households is 0.8, and is slightly higher than pig endowments (0.7 pigs) of male-headed farm households in Eastern region. On contrary, it is in the Central region without Kampala, Northern, and Western regions that male-headed farm households appear to own more numbers of pigs than their female-headed farm households. The average number of pigs sold/household in 2009/10 is highest in the Central region (0.6 pigs); whereas in the other regions, including Kampala, the average number of pigs sold range between , a level that is considered to be very low, possibly due to under-reporting. The average proportion of pigs sold to total pigs owned is found to range between: 20% in Kampala region; 38% in central region; 29% in Eastern region; 29% in Western region, and; 50% in the Northern region. This proportion may represent the right situation of pig sales for a typical smallholder pig producer that is not a commercial grower or fattener. Still, female-headed farm households sell more pigs than maleheaded farm households in Kampala area and Western region of the country. The regional distribution of the number of pigs owned and sold has not changed much since Table 13 (below) shows that the average number of pigs owned was highest (2.2) in the Central region, followed by 1.6 pigs in Eastern region, 1.4 pigs in Western region, and was least (1.1 pigs) in the Northern region. In terms of pigs sold, this was highest (2.5 pigs) in Central region and least (1.0 pigs) in Eastern region.

43 Uganda smallholder pigs value chain development: Situation analysis and trends 33 Table 13. Number of pigs owned and sold by region and gender in 2000/01 Country regions Statistics Number of pigs owned at the end of the year Sex of the household head Number of pigs sold in past 12 months Sex of the household head Male Female Total Male Female Total Central region Mean sd N Eastern region Mean sd N Northern region Mean sd N Western region Mean sd N Total Mean sd N Notes: (i) Figure in the table include means, standard deviations and frequencies. Computed by author based on IFPRI 2001 data on policies for improved land management in Uganda. Table 13 further reveals that in all regions of the country, male-headed farm households were dominating femaleheaded farm households in the number of pigs owned and sold. This gender bias appears to be reducing especially in Kampala areas and in Eastern region of Uganda. There is need to understand major constraints faced by women pig farmers in the country, but more importantly in the Central, Western, and Northern regions of Uganda. Regional distribution of pig ownership by education level The distribution of the number of pigs owned was computed by education level of household heads in all the four regions of Uganda, including Kampala region. Results of this computation are displayed in Table 14 for a 2009/10 data set and Table 15 for a 2000/01 data set. Regional distribution of pigs in relation to education level of household heads appears to have changed drastically since Table 14 shows that pig farmers in the Central region had the highest number of pigs (2.2) in 2001/01, when compared to 1.6 in Eastern region, 1.4 pigs in Western region, and 1.1 pigs in Northern region. Households with primary and secondary education owned relatively fewer pigs than households with no formal education. In the past decade therefore, households with more years of education and relatively high level of income have increased their participation in pig rearing. It is now the relatively more educated and better-off pig farmers that own more pigs than pig farmers with no formal or few years of education. Piggery is now seen as a good enterprise for business, although the number of animals may not point to a high level of commercial orientation. Table 14. Average number of pigs owned by education level and region in 2000/01 Highest level of education Different regions of Uganda Total Statistics attained by household head Kampala Central East Northern Western No formal education Mean sd N Primary education Mean sd N

44 34 Uganda smallholder pigs value chain development: Situation analysis and trends Highest level of education attained by household head Statistics Different regions of Uganda Total Kampala Central East Northern Western Secondary education Mean sd N Tertiary college/diploma Mean sd N University/postgraduate Mean education sd N Total Mean sd N Notes: (i) Figure in the table include means, standard deviations and frequencies, (ii) Very few households, whose heads had attained university or postgraduate level of education in 2000/01, appear to own pigs, (iii) Computed by author based on IFPRI 2001 data on policies for improved land management in Uganda. Table 15. Average number of pigs owned by education level and region in 2009/10 Highest level of education attained Central Eastern Northern Western Statistics by household head region region region region Total No formal education Mean sd N Primary education Mean sd N Secondary education Mean sd N Tertiary college or diploma Mean sd N Total Mean sd N Notes: (i) Figure in the table include means, standard deviations (Sd) and frequencies (n), (ii) Statistics in the table were computed based on UBOS 2009/10 round of UNPS survey. It is also clear from Table 15 that there has been an increase in the number of pigs owned with the level of education of household heads. Overall, households with no formal education have few (0.5) pigs, while those with the university education have the highest number (1.5) of pigs. This trend of pig ownership is true in all regions, particularly in Central region, where we find relatively high level of urbanization and the largest proportion of pig farmers. Education level and the extent of urbanization in a region may therefore have a positive influence on the number of pigs kept by a household. The reduction in the average number of pigs/household between 2000 and 2010 can be explained by a more representative data in 2010 and effects of African swine fever. There are more people with university level education that are increasing their participation in pig production, a phenomenon that did not exist 10 years ago. Pig ownership and household welfare in Uganda In this section, we compare the distribution of pigs that were owned and sold across livestock keeping households in different quartiles (25%) of income. The question is whether households with varying levels of welfare significantly differ in the number of animals owned and sold. Results in Table 16 show that the average size of a household was 7.3 adult-equivalents 7 in 2000/01, whereas it was only 4.7 adult-equivalents in 2009/10. There is no clear explanation 7. Adult-equivalents are scales that are used to control for age-gender differences in nutritional (food) requirements of members within a household as

45 Uganda smallholder pigs value chain development: Situation analysis and trends 35 for the reduction in household size in a 10 year period. The reduction in household size can be attributed to the limitation of relatively small dataset in 2001/01 and problems of field sampling. Table 16. Distribution of pig ownership, sales and slaughter by quartiles of household income/adult-equivalent, Particulars Income quartiles (in 2000/01) Quartiles Household adult-equivalent TLUs Owned Sold Slaughtered Very poor (25%) Less poor (25%) Rich (better-off) (25%) Very rich (25%) Total Income quartiles (in 2009/10) Very poor (25%) Less poor (25%) Rich (better-off) (25%) Very rich (25%) Total Notes: (i) Statistics in the Table were computed by Author based on UBOS 2009/10 round of UNPS survey; TLUs denotes Tropical Livestock Units; (ii) Livestock and TLU 8 equivalent are cows = 0.5, ox = 0.5, sheep = 0.10, goats = 0.10, pigs = 0.20, donkeys = 0.5, chicken birds = 0.01, other birds (turkey, ducks and pigeons) = 0.03, and rabbits = A unique correlation seems to exist between the Tropical Livestock Units (TLUs) and household welfare. The number of TLUs and the number of pigs owned or sold increase with household income. Livestock keeping households in the very rich income quartile owned the largest (2.2) TLUs in 2009/10, and 1.6 TLUs in 2000/01, a finding that reveals an increase in the number of livestock endowment in the past 10 years. And while it is the rich (i.e. households in quartiles 3) that owned the highest number (2.1) of pigs in 2000/01, we see that this changed in 2009/10, where it is the very rich households in quartile 4 that reported owning the highest number (1.1) of pigs, followed by the very poor households (with 0.8 pigs), the less poor (with 0.7 pigs) and lastly, the rich households with the average of 0.6 pigs. Although, a strong positive correlation is observed to have existed in 2000/01 between the number of pigs sold and household income level, this changed in 2009/10 (see Table 16, above). Unlike households in the very poor income quartile, households in all other quartiles (2, 3 and 4) appear to be selling similar average numbers of pigs. The number of pigs slaughtered has also reduced drastically, from the average of 0.1 pigs in 2000/01 to almost zero in 2009/10, a further confirmation that pig farmers prefer to sell live pigs to already slaughtered pig carcasses. Nevertheless, the number of pigs owned/household appears to have declined in the last 10 year period, regardless of income level. First-order stochastic dominance analysis The First-Order Stochastic Dominance Analysis (FOSDA) is conducted to assess the distribution of number of pigs owned across households in different quartiles of income and expenditure. The two measures of welfare are standardized to household size in terms of adult-equivalents in order to ensure a meaningful comparison. According to Levy (1992), the FOSDA utilizes the cumulative density function (CDFs) to evaluate the statistical differences in the variable of interest. The FOSDA of a dominant category of households has a lower cumulative density when compared to the dominated category of households. Graphically, the CDF curve of the dominated quartile is located to the left of the CDF curve of dominating alternative quartile. This is based on the assumption that households maximize expected utility and therefore have preference for more numbers of pigs to less. determined by health experts; in this study, (i) the scales for male members ranged from for age <1 5 years; for 6-10 years; for years; 1.00 for 16 years; 1.02 for 17 years; 1.00 for years; 0.99 for years; 0.86 for>=60 years; (ii) the scales for female members ranged from for <=1 5 years; for 5-10 years; for years; 0.89 for 16 years; 0.87 for 17 years; 1.00 for years; 0.87 for years; 0.86 for years; and 0.77 for>=60 years. 8. We computed Tropical Livestock Unit (TLU) equivalent for livestock species based on FAO weights for sub-saharan Africa (see Jahnke 1982); the Compendium of Agricultural-Environmental indicators to 2000, Statistics Division, FAO, November, 2003).

46 36 Uganda smallholder pigs value chain development: Situation analysis and trends Figure 9 presents FOSDA results for the number of pigs owned by households in the four quartiles of income/ adult-equivalent. The CDF for the number of pigs owned among households in the richest income quartile is on the extreme right of the alternative poorest three income quartiles. This suggests a first-order stochastic dominance of households in income quartiles 1, 2, and 3 by households in quartile 4. The number of pigs owned is therefore statistically highest for households in the richest 25%. We see that the CDF curves for each of the 3 lower quartiles cross each other. This implies that households in lower quartiles (i.e. 25% of the poorest, 25% of the less-poor, and 25% of the rich) appear to own pig numbers that are not statistically different. There is no statistical dominance across households in the poorest three income quartiles. Figure 9. The first-order stochastic dominance analysis (FOSDA) for households, comparing the number of pigs owned in the four welfare quartiles of income/adult-equivalent, 2009/10. Figures 10 and 11 are based on primary data set in 2000/01. They display the FOSDA for the distribution of pig numbers owned across households. And while the CDF plot in Figure 10 is based on welfare measure of household income/adult-equivalent, the CDF plot in Figure 11 is derived from the expenditure/adult-equivalent. Figure 10. The first-order stochastic dominance analysis (FOSDA) for households, comparing the number of pigs owned in the four welfare quartiles of income/adult-equivalent, 2000/01. Figure 11. The first-order stochastic dominance analysis (FOSDA) for households, comparing the number of pigs owned in the four welfare quartiles of expenditure/adult-equivalent, 2000/01. The two figures (10 and 11) of the FOSDA reveal a different pattern of dominance from the one in 2009/10. Households in the richest three quartiles (quartile 2, 3, and 4) are dominating the ones in quartile 1 (the poorest 25%). There is no

47 Uganda smallholder pigs value chain development: Situation analysis and trends 37 clear dominance in terms of the number of pigs owned among households in quartiles 2, 3, and 4. This finding shows that although there has been an increase in the number of pigs reared and the number of people owning pigs in the country, this increase appears to have been more pronounced among the richest 25% and poorest 25% of households. Role in expenditures This section highlights the household allocation of total expenditure to food, and especially food of animal origin. It is however important to note that information on the allocation of household expenditure is largely limited in Uganda. One has to either compute it from the section of household expenditure of National Household Surveys or conduct an independent survey. Household budget surveys in Uganda were last conducted in Uganda in 1989/90. Evidence from the 1989/90 budget survey showed that the average household expenditure on animal products ranged between 20 30%, but this appears not to have changed much in the last 20 years. Bashaasha et al. (2012) employed a proportional piling method to evaluate the relative shares or percentage scores for different items (including food) that are purchased across households in six districts of Uganda. Results show that the share of total expenditure allocated to food (including cereal and groceries) was found to be 31.2% in Arua; 25.3% in Gulu; 25.5% in Kabale; 25.3% in Kaseses; 31.6% in Mayuge; and 30.6% in Rakai district. In case of food item alone, the proportion of total food expenditure that is allocated to food of animal origin is indicated to be 27.9% in Arua; 18.6% in Gulu; 21.5% in Kabale; 14% in Kaseses; 21.7 in Mayuge; and 28.4% in Rakai district (Bashaasha et al. 2012). The other component of household food expenditure is allocated to food of: staple cereals and tubers; staple pulses, and; oil products. The above finding therefore reveals that the average household expenditure on food items in Uganda is about 28.3%, while only 22% of this food expenditure is allocated to food of animal products. There is a wide agreement that household expenditure on animal products in general has not changed much from the level of early 1990s. A recent study, van Campenhout et al.(2012) computed the average budget shares of different crop and animal products using the UNHS survey data sets of 2005/06 and 2009/10 (Table 17). This study reveals some changes in the allocation of household expenditures to different food products, with a decline in cheap starchy foods like cassava flour and maize flour, and an increase in the household budget allocated to meat products and eggs. However, the budget shares for pork have reduced slightly, from 6.26 to 5.77% between 2009/10 and 2005/06. During the same period, budget shares for beef remained unchanged; for goat meat this increased by 37%; for local chicken increased by 10%; for local eggs increased by 23% and; that of milk reduced by 6%. Table 17. Evolution of budget shares in Uganda Product 2005/ /10 Change (%) Beef Cassava flour Cowpeas Fresh cassava Goat meat Groundnuts Irish potatoes Local chicken Local eggs Maize flour Maize grain Matooke (kg) Milk Millet flour Nambale beans Nile perch Pork Sorghum flour Super rice Source: IFPRI report on the impact of food prices in Uganda (van Campenhout et al. 2012).

48 38 Uganda smallholder pigs value chain development: Situation analysis and trends In the case crop products, the biggest increase in the budget share is noted to be 21% for millet flour, 20% for sorghum flour, and 10% for Nambale beans. Distinctively, the reduction in budget shares was highest (72%) for maize grains, followed by 26% for Irish potatoes, 22% for cassava flour, and 10% for fresh cassava. Changes in preferences for different forms of the commodity Income elasticity of demand and price elasticity of demand (i.e. percentage change in quantity demanded as a proportion of percentage change in either income or price) for animal products, including pork have been high ( ) in Uganda since early 1990s. A recent study Jagwe et al (2012) reveals that poor consumers in Uganda tend to buy such animal products as: beef chops, offals, ready to eat beef, sausages, live chicken, loosely packed eggs, pasteurized milk, and ready to eat goat roasts. Conversely, consumers that are richer tend to be majority buyers of: large pieces of beef; frozen and dressed chicken; ready to eat pork roasts; raw fresh milk; powdered milk; butter; ghee, and goat chops. This study sheds more light on who buys pork in Uganda, and these happen to be the relatively rich consumers. Besides, the study found that demand for pork would increase immensely if there was an increase in income of consumers. Enhancing incomes of potential poor consumers, reducing prices of the pork products, and improving the quality of pork and pork outlets can help boost the demand for pig meat. The per capita consumption of pork in Uganda is currently estimated at 3.2 kg/person per year, the highest in East, Central, and even South Africa, and; it is about 6.5 kg/capita consumption for beef; 0.9 kg/capita consumption for goat meat, and; 0.3 kg/capita consumption for sheep meat/mutton (Agriterra-EKN 2012). These recent estimates indicate that beef consumption is almost double than pork, a finding that is in slight contrast with the trends depicted by FAO data (see Figures 1 3) that imply similar consumption levels of the two products in There is need for further evidence on the extent to which the per capita consumption of beef and pork are different or similar after the year of Nevertheless, the per capita pork consumption has increased drastically in the past 30 years, and like all other animal products, demand continues to increase more than supply. There is an increase in consumption of ready to eat pork and other meat products. A recent study, Sa et al. (2012) reveals that the majority of working-class Ugandans prefer to dine in restaurants to preparing meals at home. Consequently, they are spending more on ready to eat meat products and fast foods that include: chips, deep fried chicken, sausages, and deep fried meat, including pork. According to Sa et al. (2012), the increase in consumption of fast and ready to eat food in Kampala is significantly influenced by changes in tastes, convenience that these foods provide, and the increase in disposable income. Conversely, consumption of fast foods is shown to be constrained by an increase in household size, education level, and distance between work place and restaurants. Factors influencing trends in consumption The growth in demand of pig products can be attributed to such factors as: (i) population growth; (ii) increasing urbanization; (iii) increased purchasing power; and (iv) changes in consumption habits, given that more consumers prefer buying pig meat from outlets of supermarkets and pork joints that are characterized by a high level of hygiene and premium price. Population growth in Uganda is estimated to be about 3.3% per year, one of the highest in the world. The number of people in Kampala City increased from 450,000 in 1980 to 1.5 million in 2012 (Agriterra-EKN 2012). The large number of potential consumers in Uganda creates the need to improve productivity of smallholder pig production systems, if local supply of pig-meat is to satisfy the growing demand for meat products. Demand for pork is further influenced by periods of festivals such as public holidays, Christmas and Easter, sale of pigs to generate school fees prior to the beginning of school terms, and the prevalence of diseases such African Swine Fever that curtails movement of pigs in the country.

49 Uganda smallholder pigs value chain development: Situation analysis and trends 39 Demographic overview Uganda has a total area of 241,038 km 2 of which 197,323 is covered by land. The majority (about 70%) of the population depends on agriculture for their livelihoods. Population in Uganda is noted to have increased significantly in the last two decades. Currently, Uganda s human population is estimated to be 34.6 million, and has an average annual growth rate of 3.3% and average population density of 123 persons/km 2 (UBOS 2002). The number of persons/km 2 is estimated to be highest (226) in eastern region; 176 in the central region, and 126 in western region. The northern region has the lowest population density of 62 persons/km 2. Pastoralists are mainly found in these low densely populated areas. Population density for Kampala district, the largest outlet for livestock products is estimated at 7259 persons/km 2. A spatial distribution of human population in Uganda is summarized in the appendix (Figure A3), derived from estimates of the Global Rural Urban Mapping Project (GRUMPv1). The urban population in Uganda has increased rapidly from less than one million persons in 1980 to 3 million in 2002, representing a more than threefold increase in a period of twenty years (Table 18). During the same period, the share of the population that lives in urban areas increased from 6.7% to 12.3%. The urban population was characterized by a high growth rate of 5.1% between 1991 and This high population growth rate in urban areas can be explained by the persistent rural poverty inducing rural out-migration to urban areas. The growth in human population and urbanization has boosted demand for food of animal origin such as pork, though this also has a bearing on the entire livestock value chains such as disease control, genetic improvement, livestock nutrition, advisory services, marketing, and processing. Table 18. Trends in Ugandan urban population Census year Population (millions) Urban Total % of population in urban areas Source: Uganda Bureau of Statistics 2006 (2002 Population Census report). Urban growth rate (%) There are regional variations in the distribution of the urban population. Table 19 reveals relatively low levels of urbanization in all the country regions. This is with exception of the Central region that had 25% of its population residing in urban areas in The high level of urbanization in the Central region is attributed to Kampala City being the prime urban area nationally. Table 19.Regional distribution of urban population in Uganda Urbanization level (%) Region Central Eastern Northern Western Source: Uganda Bureau of Statistics 2006 (2002) population census report. There are more people in Central region, followed by Western region, Eastern region and population is least in Northern region (see Table 20). Population growth rates have been exceeding growth rates in agricultural output in the last 10 years, and this may be hindering efforts to alleviate poverty in Uganda. Table 20. Total population by regions, and number of people living of less than USD 1.25 and 2/day Region Total population Poor people living on USD <1.25/day Poor people living on USD<2/day (1000) Total number % of poor people Total number % of poor people (1000) region (1000) Central Eastern Northern Western Source: Report on the targeting animal production value chains for Uganda (ILRI 2012) (also derived from CIESIN (2011) and Wood et al. (2010).

50 40 Uganda smallholder pigs value chain development: Situation analysis and trends Poverty is defined as an economic condition in which one lacks both the money and basic necessities, such as food, water, education, healthcare, and shelter that are necessary to thrive. Based on the World Bank s recently revised international poverty line of USD 1.25 at 2005 purchasing power parity (Ravallion et al. 2009), and the USD 2 (PPP)/day, the average daily amount of money a person lives on in Uganda are presented in Table 20 (above). It can be seen that the proportion of poor people is highest (87.8%) in the Northern region, followed by Eastern region at 55.2%, Western region at 48.3% and is least (42.4%) in Central region. These results reveal that there can be drastic improvement in household purchasing power and changes in preference that favours consumption of animal products, includes pork, when an area experiences an increase in population, urbanization and poverty reduction. Evidence from a recent study, Agriterra-EKN (2012) shows an increase in demand for meat products in Uganda. And while demand is highest in urban areas, about 95% of all meat products consumed are retailed through a vast network of roadside and market stall butcheries. There has also been an increase in the demand for the premium segment of meat products that now accounts for about 16% of total inspected meat market in Kampala (Agriterra-EKN 2012), and also estimated to be around 2500 of t of meat/year. There is no detailed information on the demand for ordinary and premium products of pork meat in Uganda. There is widespread agreement that demand for premium meat, including premium pork is growing due to, among other factors, increasing number of people in the upper middle income class; modern hotels; new private companies; oil companies, and institutions. Table 21 provides a summary of average prices for the premium pork products in Kampala. Note that the premium price is highest (UGX 24,000) for a kg of pork chops and pork roast in supermarkets. Arguably, it is three times higher than the average price of (UGX 5500) of the ready to roast pork chops in the ordinary roadside butcheries and markets. Table 21. Prices for retail cuts and processed meat at supermarkets in Kampala [May 2012] Supermarket Nakumatt Butchers stand, fresh meat UGX/kg USD/kg Freezer UGX/kg USD/kg Pork chops with fillet Pork sausages Pork roast Pork shops Pork minced Source: Adopted from Agriterra-EKN (2012); originally in the 2012 EU Beef Report and own survey. It is evident from Table 22 that the price of pork and other meat products has increased drastically since The price of pork has more than doubled since 2004, from UGX 2500/kg to UGX 5500 in This can be attributed to a very high increase in demand that is exceeding the supply of pork and other meat products. According to FIT Uganda (2010), the average price of pork in Uganda was UGX 4040/kg in June 2009; this increased to UGX 4250/ kg for wholesale price and UGX 4770/kg for retail price in May The increase in the whole sale price of pork in 2010 was estimated to be 5.20% compared 1.93% increase of the retail price of pork in the same year. Noteworthy is the significant price differences across and within regions. For example, the price of pork was found to be highest (UGX 5800/kg) in Mbarara and least (UGX 3250/kg) in Kisoro (FIT Uganda 2010), yet the two districts are in the same Western region. Table 22. Average price/kg of meat products for the period Item Beef Goat meat Pork Source: Uganda Beef Producers Association (UBPA) 2005: in (KIL 2006).

51 Uganda smallholder pigs value chain development: Situation analysis and trends 41 Policies influencing consumer demand for pork products Uganda does not have a clear national livestock subsector policy that provides a specific rationale for livestock development, and the context in which livestock development is expected to contribute to the wider national development goals of improving consumer demand, food security and poverty reduction (Kasirye and Denormandie 2012). Livestock policies are scattered in various policy documents, strategies and master plans, which undoubtedly may create a costly duplication during the implementation. The policies largely aims at increasing household welfare (i.e. level of income and consumption) by improving the level of breeding, farm management, access to animal health services, access to animal drugs, animal feeding, production, productivity, value addition, and marketing of livestock and livestock products. However, these policies generalize the required interventions across livestock enterprises. They do not highlight specific issues that concern pig farmers and development of piggery in the country. The National Development Plan (NDP) The Government has put in place a road-map that guides government, the private sector, farmers organizations, other stake holders of civil society, and development partners in making public interventions in the agricultural sector that can boost agricultural growth, food security and poverty reduction. Recall that in the past, Uganda implemented two closely linked national plans that were introduced in 1997 to reduce poverty levels and improve rural livelihoods (Ellis and Bahiigwa 2003). The Poverty Eradication Action Plan (PEAP) and the Strategic Plan for Modernization of Agriculture (PMA) are well articulated in MAAIF and MFPED (2000); MFPED (2000);and Bahiigwa et al. (2005). In particular, the PEAP was the country s framework that aimed at reducing headcount poverty to less than 10% by Its objectives were to ensure: (i) a fast and sustainable economic growth that is broad based; (ii) structural transformation and macroeconomic stability through fiscal consolidation that can promote private sector, agricultural modernization and infrastructure development; (iii) good governance and security that can ensure transparency and accountability, and; (iv) an increase in the ability of the poor to raise their own incomes (Ellis and Bahiigwa 2003, Ellis and Freeman 2004). Conversely, the PMA provided the country with a comprehensive and multisectoral plan to modernize agriculture, and was operational between 2001 and During this period, significant progress was made in the areas of agricultural research and agricultural advisory services. In 2010, the two plans (PEAP and PMA) were incorporated into a five-year National Development Plan (NDP) and the Agricultural Sector Development Strategy and Investment Plan (DSIP). The two plans work together in guiding the country s agricultural priorities and development programs. The NDP aims at transforming Uganda from a peasant to a modern and prosperous country within the next 30 years. Its objectives are to boost household income, reduce poverty by turning agriculture into a profitable, competitive, sustainable, and a dynamic primary and agro-industrial enterprise, beginning with the first six operational years from 2010/11 to 2014/15. No doubt, the government is putting more emphasis on: (i) enhancing private sector investment, boosting production and farmer productivity; (ii) improving access to markets and value addition; (iii) creating an enabling environment; and (iv) strengthening institutions in the agricultural sector. Other policies for development Significant public investments are going on in the country, and these are in the areas of rural roads and telecommunication infrastructure. The investments are vital in reducing transaction costs and other market imperfections that hinder access to market information and participation in the market of agricultural inputs and output. Public investments in infrastructure can help move farmers up the value chain in value addition activities. In turn, the extent of value addition can improve rural incomes and livelihoods.

52 42 Uganda smallholder pigs value chain development: Situation analysis and trends The new policy framework has ushered in an enabling environment for farmers, entrepreneurs, and investors to make informed and value-enhancing decisions. According to Republic of Uganda (2010), the government is committed to increase investment in core areas of agricultural research; agricultural advisory services; pest and disease control; regulatory services; promoting value chain development; policy formulation and planning; operationalizing improved use of water for agricultural production, and supporting and supervising service delivery in local governments. In general, the government has in the past 12 years implemented several policies and strategies. The policies include: (i) Poverty Eradication Action Plan (PEAP) and National Development Plan (NDP); (ii) the new National Development Plan ; (iii) Health Sector Strategic Plan (HSSP) II ; (iv) Plan for Modernization of Agriculture (PMA) that was aligned under pillar 2 of PEAP to transform Uganda s agriculture from subsistence-based to commercial-oriented sector; (v) Education Sector Strategic Plan that gives a basis for free primary and secondary education; (vi) the National Adaptation Plan of Action 2007, which deals with the challenges of climate change; (vii) the National HIV/AIDS Strategic Plan 2007/ /12, and; (viii) the Decentralization Plan that supports the implementation. According to UPTOP (2006), other related policies that are in place include the National Meat Policy; Animal Feeds Policy; Uganda Food and Nutrition Policy; National Environment Policy; Veterinary Drug and Delivery Policies, the National Health Policy, and the National Land Use Policy. Current policy issues under debate regarding pork consumption There are several policy issues that have formed debate on pork consumption. These range from production, management of feeds, disease control, marketing, pig meat inspection, and price effect. A recent study UPTOP (2006), reveals a number of policy gaps in terms of government efforts to enhance consumption, and exchange of livestock products. For example, the strategic linkages with relevant government ministries and other key public institutions, exporters, and export associations are noted to be either limited or missing. These and other actors in the value chain may be important when it comes to providing expert information and guidance that can enhance pork consumption. There have been calls to put in place a comprehensive policy guideline that can encourage production and trade of livestock and livestock products. According to the Republic of Uganda (2010), the Agriculture Sector Development Strategy and Investment Plan 2010/ /15 was formulated and launched against this background. The DSIP serves to consolidate and harmonize all the existing parallel policy frameworks in the agricultural sector into one coherent plan. There are calls from farmers, cooperatives, and traders that the government should focus on providing incentives to smallholder farmers, in order for them to adopt appropriate animal husbandry practices that increase productivity in the livestock sector. Here, the policy issue is on how to ensure effective interventions that can improve extension services, access to quality feeds, animal feeding practices, housing, animal health, and breeding practices to reduce inbreeding. Marketing livestock and livestock products in Uganda is still facing the challenge of imperfect information and high transaction costs. It is imperative that livestock farmers be helped with affordable access to information that can help them improve the safety, quality, and quantity of livestock products for increased market access. Within the value chains, livestock farmers need to be supported with access to credit and veterinary services for increasing their supply but for upgrading their involvement in value addition along the value chain as well. The marketing infrastructure and its efficiency need to be improved. Ugandans need sensitization on good quality feeding, especially with foods of animal origin. This can help reduce the risk of poor health, but at the same time support the livestock sector by demanding more products countrywide. There are also calls to promote appropriate research on livestock and meat products, especially when it comes to cholesterol levels.

53 Uganda smallholder pigs value chain development: Situation analysis and trends 43 In urban areas and even in rural areas, food safety issues and poor quality standards at major abattoirs and slaughter houses has become an issue of debate. This also concerns the road-side butchers/markets and ready to eat pork products. There are calls to ensure effective inspection of livestock transportation, slaughter houses, pork, roadside butcheries, and ready eat market places. Noteworthy is that the private sector can serve some of the interests of the livestock sector to a large extent. However, there are crucial areas that need the support of public sector investments that are still limited. Such areas may include livestock disease control, livestock research, improving animal breeding, investing in modern abattoirs, ensuring quality control, provision of financial and extension services, enforcement of standards, and improving marketing infrastructure that reduce the cost of distributing meat products. Conclusions regarding the likely market growth scenarios The business as usual scenario is likely to enhance domestic demand for pork, growth of informal markets for live pigs and pork. This will however be characterized by pork products with limited value addition, dominance of local traders at various stages of the value chain, and minimal participation and upgrading of women pig producers. There is need to include pro-poor development of pig enterprises on the policy agenda of the country, if domestic and regional demand of pork is to be satisfied. This will not only lead to the growth of input and pig meat markets, but also the transformation of pig value chains. The targeted flow of resources and technologies in the pig sector can increase the participation of poor smallholder pig farmers, including women. An increase in the supply of pork amidst high demand is therefore likely to increase growth of formal markets, production of good quality pork, and export of pork products in the neighbouring countries. The domestic and regional markets have the potential to continue growing for many years to come. What is important is the need to improve efficiency of farm level productivity and performance of related pig value chains.

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55 Uganda smallholder pigs value chain development: Situation analysis and trends 45 Production of pigs in Uganda This section focuses on the production node and assesses value chain (VC) performances in terms of trends in volumes and related indicators. The production node level horizontal equity issues are examined, in order to characterize size distributions of producers at national, district, and regional level. Statistics indicate that over 90% of all livestock animals (cattle, pigs, sheep, goats, and poultry) in Uganda are owned by smallholders (FAO 2005). Growth in livestock has been increasing in the last three decades, but this is still low compared to the growth rate in human population. The number of animals slaughtered is increasing, despite the low growth rate in productivity (yield or carcass weight). According to FAO (2005), it is only pigs and poultry that have continued registering minor gains in off-take rate. There are other constraints to livestock production and trade in Uganda, some of which include: Bovine pleuropneumonia, Foot and Mouth Disease, Contagious Caprine pleuropneumonia, African swine fever, and Lumpy skin disease, among others (UPTOP 2006). All these constraints need to be minimized if the pig industry is to develop to a level that can benefit smallholder livestock farmers and poor consumers in Uganda. Arguably, the pig industry in Uganda is considered to be underdeveloped. The current population of pigs is currently estimated to be at only 3.2 million, yet the country has the potential to be self-sufficient in pork products. Any interventions to boost the productivity in the pig sector therefore requires mobilization of investment in breeding, feed production, and modern abattoirs for pigs, among others. Pigs are known to have high productivity and growth rates. On average, sows can farrow 8 12 piglets, but this can even go up to 16 piglets (Twinamasiko 2001b). Farrowing takes 4 5 hours on average and sometimes it can be shorter or longer than the average (Mutetikka 2009). Pigs are resistant to many diseases, and their unrestrictive feeding habits, allows them to eat various feedstuffs (Twinamasiko 2001b).Feedstuffs range from swill, crop residues, homemade rations and commercially prepared feeds. Tethering pigs under the shade, or building low cost pens under the shade, providing water and ensuring frequent shift of tethering points at intervals of about 3 months can help to drastically improve productivity of smallholder farms and to minimize parasite infestation in the extensive system of pig production. Trends of annual production Table 23 shows the trends in production of animal source foods between 1980 and These comprise meat, milk and eggs. Meat production has been increasing, particularly in the case of mutton and goats, pork and poultry. However the increase observed in the period did not keep pace with population growth, except for the case of poultry. The stock of live animals in Uganda for a period of 1961 to 2010 was derived from the FAOSTAT data. Figure 12 displays the trend for stocks of major animals in Uganda. It can be seen that the number of chicken is highest, reduced between 2001 and 2007, before increasing again in The stocks of cattle and goat are also increasing, and are shown to be much higher than the stocks of pigs and sheep.

56 46 Uganda smallholder pigs value chain development: Situation analysis and trends Table 23. Trends in annual production of meat, milk and eggs (000 t) Product Year Annual growth rate (%) Meat, total Beef Mutton and goat Pig Poultry Milk, total Eggs, total Source: FAO (2005). Figure 12. Stocks of live animals (chicken included) in Uganda, Source: FAOSTAT (2012). Figure 13 presents the same pattern of animal stocks as in Figure 12. The stocks of chicken are not included in order to allow easy comparisons between cattle, goats, pigs and sheep. Note that the stocks are highest for goats, followed by cattle, pigs and are least for sheep. This can be explained by the past and present policy interventions that have had a significant effect on cattle and goat production, and less or almost no consideration on piggery and sheep production. The increase in the human population, changes in tastes and preference of households, especially in urban places, and the limited supply of beef products due to challenges of climate change and low productivity levels have all contributed to the increase in the stocks of goats, sheep, pigs, and sheep. This has been the case since 1986, when conducive macro-economic stability and security were ushered in by the Government of President Museveni as shown in Figure 13. Figure 13. Stocks of live animals (without chicken) in Uganda, Source: FAOSTAT (2012).

57 Uganda smallholder pigs value chain development: Situation analysis and trends 47 Primary livestock production Here, a description of the Uganda livestock sector is presented in terms of the: (i) number of livestock heads that are produced/slaughtered, (ii) yield/carcass weight in kg/animal, and (iii) production is in tonnes. Figure 14 (below) displays the trend in the variation of animal heads in Uganda between the year 2000 and Each of the animals (cattle, goats, pigs, and sheep) appears to have registered a slight increase in the number of heads. However, this increase in the past 10 years is much more pronounced in the pigs, followed by sheep, goats and cattle. In particular, the number of heads did not increase much in cattle and goats as further indicated in Table A4, in the annex. Figure 14. Number of producing/slaughtered animals. FAOSTAT (2012). Production (in tonnes) of different animals is computed from the FAOSTAT data. Results of this analysis are summarized in Figure 15 (below) and Table A6 in the annex). The total production of cattle, goats, pigs and sheep have increased drastically from about 240,000 t in the year 2000 to 330,000 t in This indicates a growth rate of 3.75% per year that is slightly higher than growth rate (3.3%) in human population in the country. This increase was mostly registered in the production of pigs, sheep and cattle, and was low in the chicken and goat meat. Figure 15. Production (t) of livestock animals (FAOSTAT 2012). The average carcass weight is also computed from FAOSTAT data. Figure 16 shows results of this computation. As expected, the carcass yield or productivity of meat producing animals in Uganda has not shown signs of increase, and practically the carcass weight for pigs, cattle, goats and sheep has remained unchanged in the last 10 years. Table A5 (in the annex) shows that the carcase weight of pigs has been constant at 600 hectograms (hg)/animal (or 60.0 kg/ animal), since In case of cows the carcase weight has stagnated at 1500 hg/animal (or 150 kg/animal), while it is 117 hg/animal (or 11.7 kg/animal) for goats, and 140 hg/animal (or 14 kg/animal) for the sheep.

58 48 Uganda smallholder pigs value chain development: Situation analysis and trends Figure 16. Yield/carcass weight (hg/animal). Source: FAOSTAT (2012). When the average productivity in Uganda is compared to that of other regions of the world, the country is performing poorly, but does not perform differently than the average for East Africa and Africa as a whole (Table 24). In the case of pigs, the average carcass weight in Uganda is estimated at 600 hg/animal (or 60.0 kg/animal), and is higher than the average yield in East Africa and Africa in general (56.8 and 56.5 kg, respectively). However, when compared to Asia, Europe, America and the whole globe, it is evident that Uganda still lags behind. It is therefore very important that more effort be put in harnessing livestock yield, especially in pigs, cattle, and chicken. Table 24. Average livestock carcass weight/yield, Uganda vs. the rest of the world, 2010 Item Uganda Eastern Africa Africa Asia Europe America Global Chicken meat 13,000 10,157 11,905 12,781 15,291 19,521 15,579 Cattle meat Goat meat Pig meat Sheep meat Note: Yield/carcass Weight in terms of 0.1 gr/animal for chicken and hg/animal for other animals. Source: FAOSTAT (2012). Systems of production This section presents a pig production profile with key features including organizational strategies, level of employment, income generated, and gender issues. The majority of pigs are produced under the subsistence system, but a few commercial units exist (Twinamasiko 2001b). Pig production in Uganda is characterized by quick turnover, and is therefore appropriate for smallholders who tend to operate using small short-term loans. Pig keeping in Uganda is categorized in three basic production systems: (i) intensive, (ii) semi-intensive, and (iii) extensive (small-scale subsistence) production systems. Intensive pig-production system In the intensive system, pigs are kept housed all the time in a small place where they are provided with feeds, water, and protection from extreme weather (Mutetikka 2009, Pezo and Waiswa 2012).And while this system is characterized by higher demand for labour and other inputs, it is considered to provide higher farm output that is vital for commercial production. This system accounts for a very small proportion of pig production in Uganda (less than 10%). There are few farm units in the country that keep up to 100 pigs.

59 Uganda smallholder pigs value chain development: Situation analysis and trends 49 The system requires significant amount of capital, management skills, and aggressive marketing arrangement. Conversely, the system allows the farmer to ensure easy selection of breeding stock, faster growth of pigs, effective control of diseases/internal parasites, good hygiene in the pens, minimum mortality rates of piglets (due to crushing, starvation, chilling, and cannibalism by sows when starved), easy harvesting of manure, and market supply of live pigs. Semi-intensive pig-production system This system of pig production is where pigs are partly housed and partly kept outdoors on the pasture (Mutetikka 2009). The system is not very common in Uganda, but can be found in areas where the price of pork is highly remunerative. The fact that pigs are confined to a limited space, the system provides opportunities to improve feeding, growth rate, disease control, control of heat stress, enhancement of mating (boars become active when not housed full time), and to have better quality animals (Pezo and Waiswa 2012). Pig farms that adopt this system may have to invest in higher inputs (compounded feeds and mineral supplements); demand high amounts of labour, and can enjoy relatively high farm output. Extensive/small-scale pig-production system The extensive pig-production system is the simplest and most common system in Uganda (almost 90% of the pigs are in this system). Pigs are kept out-door, on pasture all the time. It can be the free range scavenging type where pigs are allowed to freely move around the homestead as they feed on their own, or the tethered type where pigs are tied on the rope to limit their movement in a restricted space. Some feed (waste food and crop residues) are usually provided to tethered pigs and more labour input is needed to keep moving the animals from one place to another (Pezo and Waiswa 2012). This system is often practised by the very poor, who tend to invest in a low cost/low output farming system that characterizes subsistence production in Uganda s livestock subsector. As a result of poor management system, there is no breeding program (Twinamasiko 2001b), while routine management procedures (i.e. teeth trimming, de-worming, and general hygiene) tends not to be practised at all in this system. There is also little information regarding the structure and composition of the pig sector in Uganda. Based on the scale of production, pig farms can be classified in industrial, large farm and smallholder/subsistence farms. Industrial pig farms There are very few larger modern pig farms in Uganda that practice intensive pig production (more than 500 pigs) for commercial sale. This type of farms is mostly found near Kampala and provide pork to the formal sector that also includes commercial butcheries, larger restaurants and hotels, and the processing sector. Large pig farms There are also few large pig farms in Uganda that keep more than 30 pigs. The majority are considered to be mediumscale pig producers who keep between 5 30 pigs. They are often organized in small groups and supported by NGOs, government and donor programs (Mutetikka et al. 2009). Smallholder pig farms Smallholder farms (farms with less than 5 pigs) are widespread in almost all areas of Uganda, in the peri-urban and rural settings, and keep on average 2 5 pigs, often under poor management conditions. The pig industry has suffered hindrances from lack of foreign and internal investments (MAAIF and NAADS 2011), but despite this, it is the smallholder pig farmers in the country that have continued to sustain pig farming. The nature of smallholder farm

60 50 Uganda smallholder pigs value chain development: Situation analysis and trends systems in Uganda is complex, given the different types of animal that are kept on the farm, several crop enterprise mix that are managed on the farm, and the highly diversified income sources that household members tend to engage in. The system is associated with low costs of investment. It provides meat for home consumption and for sale to the majority rural poor. Smallholders pig production is frequently associated with improper feeding; poor productive performance; slow growth, and; inferior carcasses (Twinamasiko 2001b). The poor disease control on smallholder farms can lead to higher risk of disease spread (especially the internal parasites) between pigs and humans. Smallholder pig farmers may also engage in breeding animals to produce piglets that are sold to other farmers that specialize in growing and fattening pigs. According to Pezo and Waiswa (2012), understanding determinants of success and failure of this type of specialization at farm level can help identify the needs at different times that can trigger efficiency in marketing pig products. Factors influencing trends in production Several factors are widely considered to have influenced pig production in Uganda. Many small-scale producers are increasingly choosing to participate in piggery as a reliable source of income and storage of wealth. Consequently, the share of households that keep pigs has increased country wide. This increase can be attributed to the country s local market for pork that is growing even in rural areas; price of pork that is still largely affordable to many consumers; use of a more highly motivated family labour in most poor households; low cost of hired labour; flexibility to sell pigs when economic needs arise; good climate that supports even pigs raised in the extensive system; access to suitable land that allows the production of cheap local feeds, and access to the necessary veterinary services in some areas. There also factors that have continued to constrain pig production, namely: pig diseases, particularly African swine fever and parasites, poor breeding, lack of capital for investments, limited access to advisory services, insufficient research, lack of organized marketing, as well as processing industries. Urbanization, population and purchasing power in Uganda have increased. These have in turn boosted demand and consumption of pig meat and other livestock products. The market for pork though still disorganized, has increased and continues to increase in urban areas (Twinamasiko 2001b). Unlike at homes where pork consumption is still small, the demand for ready to eat pork in social places known as pork joints is increasing. This is true whether such social places are in urban or rural areas. An improvement in pork market has contributed to enhanced production. However, the market price is still not good enough to encourage high quality pork production. Gourmet industries and butcheries are mushrooming in Kampala, the main city. These demand more live pigs and in turn supply quality pork cuts which has contributed to a significant growth of pig production. Lack of good breeding stock and planned breeding schemes for smallholder pig farmers has resulted in high level of inbreeding, thus leading to small litter size, poor growth rates, and small animal size, especially in the so-called local pigs. Most pigs are small in size, and this is the case even on farms with good management practice. In this sense, there is need to put more emphasis on the selection of good piglets for reproduction; improvement of breeding programs, and eventually the use of artificial insemination with selected boars, in order to boost yields and minimize genetic disorders. High losses of piglets are often registered on farms, especially during the first week of farrowing. This normally happens when piglets are crushed and sometimes eaten by sows, due to poor feeding and inadequate farrowing pens. Improved housing for pigs can help reduce most of these losses. Productivity of pigs tends to reduce during the dry season, due to the poor feeding. Given that most pigs in smallholder households in Uganda are fed on kitchen and farm wastes (e.g. cassava leaves, sweet potato vines, banana peelings) seasonality is becomes a crucial issue.

61 Uganda smallholder pigs value chain development: Situation analysis and trends 51 It is therefore important to explore ways of ensuring that farmers learn how to formulate improved pig diets using available crop residues and by-products such as maize bran, rice bran, banana fruits, banana peelings, brewers and distillers grain, soybean meal, cotton seed meal, fish meal, and sugarcane molasses. Strategic supplementation of basal diets can also be made of sweet potato vines, yam and cassava leaves, banana stems, paw paws, pineapples, pumpkins, and tomatoes, and some grasses. The use of commercial feeds on intensive and semi-intensive farms is increasing, and this is further creating significant contribution to the increase in growth rates and piggery productivity in general, but their utilization should be strategic in order to reduce costs of production. For many years, social and religious affiliation has been a serious constraint for pig production. In many Muslim dominated communities, pig production is not encouraged. The increase in commercial production of pigs is however changing these cultural and religious attitudes slowly in many places of Uganda. There is an increase in the number of smallholders rearing pigs, which are now more than one million households. The work of NAADS and other stakeholders in promoting pig production has also contributed to the increase in the total output of pig meat. Policies influencing production In the past 10 years, the Uganda Government through MAAIF has made a number of investment programs and policies that aim at developing a sustainable livestock (cattle, goats, sheep and chicken) industry and sufficient supply of good quality meats for national, regional and international markets. Beef, but not pork, is one of the 17 strategic priority commodities that are being addressed under the framework of DSIP that emphasize an increase in productivity and meat supplies. The Government of Uganda has been implementing a vigorous livestock development program based on policies that support and encourage commercial livestock production while ensuring animal health, appropriate market channels for all producers, and better provision for veterinary services to livestock farmers in the country. Some of the strategies being implemented by the government include: (i) carrying out effective animal disease control; (ii) implementing the regulations and the appropriate animal health standards; (iii) promoting genetic improvement and better animal nutrition; (iv) training and ensuring the delivery of advisory services; (v) supporting livestock research, and improving the marketing system of livestock and livestock products. There is a policy aimed at strengthening research on livestock breeding to upgrade the quality and productivity of herds. Furthermore, there are calls to improve management systems at the district (local government) level. Currently, the Local Government Act of 1992 and the decentralization policy of 1993 allow local governments (districts, urban authorities and sub-counties) to perform some core functions animal husbandry and extension services. These functions include the enforcement of government regulations, creation of bylaws, and recruitment of extension service providers and veterinary officers. The existence of rampant disagreements, lack of commitment, and power struggles between local and central governments are hindering efficient delivery of veterinary services. Here, the crucial policy issues and concerns are in relation to the need to how the operation of central and local government in the enforcement of livestock extension services, disease control, nutrition of pigs/other animals, and food safety issues of pig meat and related meat products. In order to reduce mortality of pigs and human health problems to the minimum, it is important to improve the quality of pig meat in slaughter houses and places that sell ready to eat pork.

62 52 Uganda smallholder pigs value chain development: Situation analysis and trends Policy issues regarding development of pig production and the structure of the sector Currently, pig production is not among the priority areas of the Agricultural Sector Development Strategy and Investment Plan (DSIP). There is debate, however, on why piggery was left out, yet it is one of the most promising livestock enterprises in the country. Farmers and farmer cooperatives involved in the pig sector would like to see a better policy that helps them get access to affordable credit from commercial banks and Micro-finance institutions. Currently, the interest rates on commercial loans and MFIs credit are currently high, and banks seem not to be interested in financing agricultural projects of smallholder farms. Demand for pork and other meat products is very high, amidst the ever increasing human population. Consequently, the price of pork is beyond the reach of many consumers, who are also unable to afford buying regularly other animal products. With the high level of HIV prevalence in the country, and therefore the need for improving the nutrition level of the population, there are calls from the community to have a policy that promotes effective distribution of livestock products to all corners of the country at affordable prices. Traders and transporters would like to see a reduction in transaction costs due to the movement of livestock from rural to urban areas. Most small holders engage in more than one enterprise on farms. There is policy debate on how to ensure high productivity in the mixed livestock crop systems where most of the smallholders live. Intensive farming in peri-urban and urban areas appears to be very attractive. Establishing mechanisms to upgrade the quality and productivity of herds in highly populated areas, where demand for animal products is also high, can therefore help increase the supply and consumption of pork among the poor livestock producers in the country. Ultimately, achieving high productivity implies the need for improving research, training and extension service to support the development of smallholder livestock production; providing an expanded source of production credit and investment incentives to increase the number of pigs and related agribusiness investment, and establishing an efficient disease-control system based on cost recovery. The Ugandan, and East African pig industry in general has a big potential, but market incentives need to be created, if poor farmers are to take advantage of the burgeoning pig industry. There is need to open up additional markets that are attractive to farmers in Uganda to enable even more farmers to benefit in terms of reducing costs of housing, feeding costs and optimal use of environmental systems. The question is how much to grow the pork sector in a way that allows broad benefits to lower income households. The idea of promoting selected few agricultural enterprises in different production systems appears to be a key area of debate. The government would like to improve the performance of the agricultural sector by intervening more on ten key commodities that are of strategic importance to household food security and export earnings. However, these enterprises do not include pigs at the moment (Republic of Uganda 2010).

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64 54 Uganda smallholder pigs value chain development: Situation analysis and trends Imports and exports of live animals and meat products Livestock trade in Uganda is very limited. The value of livestock imports in general is almost non-existent (FAO 2005). The contribution of livestock products (live animals, meat and milk) to the total value of imports is still small (less than 0.5%). It is estimated that Uganda s livestock export earnings grew from an estimated USD 5.75 million in 2004 to about USD 10.4 million in 2008, of which meat products are one of the major export earners (Agriterra-EKN 2012). The level of exports for live animals and meat products is still low, and this is probably due to high domestic demand, poor quality of meat products, lack of export standard abattoirs, and the low levels of production as a result of various livestock diseases and other constraints. Nevertheless, the potential for regional trade and exports to the neighbouring countries is very high (Omamo et al. 2006). Uganda exports live animals and meat product to various countries, including Kenya, Tanzania, Rwanda, Southern Sudan and D.R. Congo (Agriterra-EKN 2012). The number of live pigs exported is however very low. Trends in level of imports and exports Here, FAOSTAT data on annual trade statistics for Uganda is used to assess the trend of the level of imports and exports between 1961 and Uganda imported a large number of goats, sheep and cattle between 1961 and 1978, but after the level of imports reduced to almost zero, with exception of few goats between 2005 and 2007, whereas, in the case of pigs, importation has been negligible for the last fifty years (Figure 17). Figure 17. Quantity of live animals imported in Uganda,

65 Uganda smallholder pigs value chain development: Situation analysis and trends 55 When it comes to the level of exports, Figure 18 shows a drastic increase in the number of cattle exported since Goats are the other animals that are exported in high numbers. Exports of sheep and pigs are noted to be very low. Figure 18. Quantity of live animals exported out of Uganda, This pattern is further confirmed by results shown in Table 25. In 2009, the only species with net imports of animals are chicken, whereas for cattle, goats and sheep there have been more animals exported than imported, and neither imports nor exports of live pigs. In terms of livestock products, in the same year there was net import of milk cream, pork, chicken and turkey meat, and pork sausages (Table 26). These statistics suggests that the pig sector in Uganda is still serving only the domestic market. There is need to boost quality products of pig meat to meet the growing demand of premium pig meat products that are currently imported. Table 25. Net-imports of live animals in Uganda, 2009 Item Imports Exports Net-imports Chickens (1000 Head) Cattle(Head) Goats(Head) Pigs(Head) Sheep(Head) Source: FAOSTAT, FAO Statistics Division June 2012, (a negative number implies exports). Table 26. Net imports of animal products in Uganda, 2009 Item Import quantity (t) Export quantity (t) Net imports (t) Cow milk, whole, fresh Cream Fresh Chicken meat Duck meat Cattle meat Goat meat Sheep meat Pig meat Turkey meat Sausages of pig meat Fat of pigs Meat extracts Oils, fats of animal Total quantities

66 56 Uganda smallholder pigs value chain development: Situation analysis and trends Item Import quantity (t) Export quantity (t) Net imports t) Animal fats 41 + (Total) Bovine meat + (Total) Butter + (Total) Canned meat net + (Total) Cheese and curd + (Total) Eggs in the shell + (Total) Eggs liquid, dried + (Total) Hides and skins 21 + (Total) Meat offals fresh + (Total) Meat poultry fresh + (Total) Meat sheep fresh + (Total) Milk dry + (Total) Milk equivalent + (Total) ,569 10,167 Milk fresh + (Total) Offals edible fresh + (Total) Other meat + (Total) Ovine meat + (Total) Pig meat + (Total) Poultry meat + (Total) Sausages + (Total) Total meat + (Total) Source: FAOSTAT, FAO Statistics Division June 2012 (a negative number implies exports). Data from the Uganda Revenue Authority for the period (Table 27) show the imports of live pigs only for There were also more imports of pork and pig meat products, particularly in 2011 when it reached almost 134 t, valued at UGX 2.2 billion. In contrast, the exportation of pork and meat products in the same year was only of 1.4 t, equivalent to UGX 29.6 million (Table 27). For more details on the imports of other live animals and their corresponding meat products, see results in Tables A8 and A9 in the annex. Table 27. Imports and exports of live pigs and pig meat (and pig meat products), Items Live pigs imported Number 1030 Value (million UGX) 24.6 Pig meat and meat products imported Quantity (kg) 10, , ,601 Value (million UGX) Live pigs exported Number Value (million UGX) Pig meat and meat products exported Quantity (kg) 18, , Value (million UGX) Source: Compiled from Uganda Revenue Authority (URA) Data, Division of Research. Factors influencing trends Local and regional demand for pork has increased as a result of changes in tastes; increase in income, and increase in human population. The informal nature of pig trade, including lack of cooling transport facilities, means that pork quality is still not adequate to meet the standards of export markets. As a result, almost all the pork produced in the country is consumed in the domestic market, and usually sold the same day animals are slaughtered. Production and consumption of other livestock meat such as bovine meat is reducing, whereas pork consumption is increasing.

67 Uganda smallholder pigs value chain development: Situation analysis and trends 57 Niche markets The market of live pigs, piglets, and pig manure is more eminent in rural areas and at farm level. The market for adult pigs for slaughter is however bigger in collection centres (wet markets) that tend to be located in urban areas. Traders transport pigs from rural areas to collection centres, which are also directly linked to slaughterhouses. Pig carcasses and pork pieces are sold to consumers from butcher shops located along the roads, supermarkets, and ready to eat pork joints. At the moment there are no well-defined export markets for pork in the country. Informal versus formal trade Most of the transactions of live pigs and pork products take place in the informal markets that include on-farm exchanges, informal slaughter places, road side butcheries and informal ready to eat pork joints. Recently, formal markets have started dealing in good quality premium products for rich consumers. These formal markets include organized shops that sell fresh cuts, fresh pork, and frozen pork products. Nevertheless, the market for pork is still dominated by informal trade. Policy on exports and imports of live pigs and pork products Policies on the export and import of live pigs and pig products appear to be largely missing. This is because, pigs are not yet considered among the priority enterprises for investment in the country. Therefore, there is need to put in place policy interventions that encourage high productivity, high quality pig meat products, and export of live pigs and pig meat to the neighbouring countries. Major policy issues under debate The policy debate in Uganda for the larger livestock sector, including piggery, is hinging on the need to allow free market prices to prevail. It is envisioned that when key stakeholders are provided with incentives, free market prices can further encourage them to boost production that can meet the increasing demand. The traders and investors are calling for a policy intervention that can effectively promote and develop industrial linkages for livestock products in the country. This will not only improve value addition in the supply chain, but also ensure quality products that can boost the level of export of livestock and livestock products.

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69 Uganda smallholder pigs value chain development: Situation analysis and trends 59 Current perspective on opportunities for pro-poor pig value chain development R&D In terms of research, from Makerere University, NaLIRRI and MAAIF have been putting in relatively limited efforts in pig research with the aim of improving production. Compared to other animals the pig enterprise has received the least research input from major institutions in the country. Some of the research on pigs in Uganda has been in line with the characterization of pig systems, nutrition and management, and more on animal health (i.e. ASF and cysticercosis). However, there is lack of clear linkages between the research and development institutional actors. Currently, there are several international institutions working on pig research in Uganda, and these include the Swedish Agricultural University and Swedish Veterinary Services in ASF; Iowa State University in pig management, and ILRI in animal health (i.e. cysticercosis, ASF). Pig production is clearly not among the government priorities for development when compared to dairy and beef cattle, goats, poultry, and apiculture. In terms of government policies, only the National Agricultural Advisory Services (NAADS) 9 has some relevant activities that promote pig production in the country. Most local governments or districts tend to choose agricultural initiatives that put more emphasis on crop related enterprises (and other types of livestock) than is the case on piggery. Other NGOs such as VEDCO are trying to fill existing gaps by conducting interventions in pig farming in Central and Eastern Uganda. Pig production systems have the potential to ensure pro-poor development, since it is the poor and marginalized groups including women that tend to engage in piggery. Besides, pork and other pork products have high demand in the market that makes pig production a potential lucrative business. There is still room for increasing efficiency in pig production systems, even though the market of live pigs, pork and pork products is segmented. However there is need for the market to reward quality of pork and efficient supply of pork to the poor and vulnerable groups. Animal stocks in Uganda are still highest for cattle, followed by goats, pigs and are least for sheep. However, the increase in average production (in tonnes) has been mostly registered in pigs, followed by sheep, cattle, and is lowest in goat meat. The growth rate in pork and pork products provides the country an opportunity to increase local consumption and exports of animal sourced foods. The number of pigs imported in Uganda and pigs exported in various countries, including Kenya, Tanzania, Rwanda, Southern Sudan and D.R. Congo is still low. However, the potential of regional trade and exports of live pigs and pork products, especially in neighbouring countries is very high. By and large, the pig sector in Uganda is still dominated by the domestic market. An improvement in household income, quality of pork processing, and good pork marketing has increased demand for premium pork and pork products. 9. In the case of the promotion of pig production, NAADS identifies a pig farmer leader in a village based on institutional criteria, then s/he receives some animals and training, on the condition that s/he trains other farmers in the village, and allows her/his boar to serve gilts and sows of other farmers in the village, normally for small fee. In some cases, there is some sort of pass the gift approach like in the case of Heifer Project. The effectiveness of this NAADS scheme and the way recipients are selected has received serious criticism due issues related to political bias in the process.

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71 Uganda smallholder pigs value chain development: Situation analysis and trends 61 Inputs and services: Pig health This section focuses on key animal health constraints and access to veterinary service. The incidence of pests, vectors, and diseases in the livestock sector is reported to be high. Several diseases are known to affect pigs in Uganda, and they include among others African swine fever, foot and mouth disease, helminthosis, scabies, mange (i.e. skin disease characterized by intense itching and caused by mites), coughing, diarrhoea, and footrot. Controlling for these diseases and vectors is one of the priority areas of Uganda s DSIP. Several strategies are employed to ensure animal health, and these include among others: (i) recruitment and training of personnel, (ii) building capacity for diagnosis, (iii) establishing traceability system, enforcing quarantine regime, (iv) strengthening surveillance and reporting, (v) enforcing standards, creating awareness, and increasing support to local governments (GOU 2011). Structure of animal health sector The Ministry of Agriculture, Animal, Industry, and Fisheries (MAAIF) is responsible for overseeing the animal health infrastructure in Uganda. Details of the macro-structure of MAAIF are summarized in Figure A11, while the organization structure of the department of livestock health and entomology is presented in Figure A12. The Directorate of Animal Resources has three departments, namely: (i) Animal production, (ii) Livestock health and entomology, and (iii) Fisheries resources. The Commissioner of Livestock Health and Entomology has the mandate of overseeing activities on disease control, veterinary inspection and regulation, and entomology. Government veterinary inspectors and officers in MAAIF and in the local governments (district level) work together with other agricultural extension workers from NAADS and NGOs to ensure improvements in animal health. Veterinary authorities are mandated to physically inspect pigs and other animals to ensure that they are free from diseases, vectors, and pests. The private veterinary service providers, drug shops, and community based animal health service providers (includes other farmers that only operate legally in Karamoja region) supplement the work of government veterinary officers in reaching out to pig and other livestock farmers. They provide farmers with information on disease control and drugs to treat pig diseases. Furthermore, the big pharmaceutical companies (e.g. Coopers, Eram, Nabrook etc.) are also active in disease control by supplying animal drugs. The National Drug Authority (NDA) is mandated with the work of inspecting and regulating all drugs that come in the country according to the National Drug Policy and Authority Act of 1993 (GOU 1993), the Food and Drugs Act (GOU 1959), and the Animal Diseases Act (GOU 1918). In particular, the national drug policy, like other related policies, is silent on specific issues of pig drugs and their handling. Nevertheless, it establishes that NDA has to ensure availability, at all times, of essential efficacious and cost-effective drugs to the entire population of Uganda, as a means of providing satisfactory health care and safeguarding the appropriate use of drugs.

72 62 Uganda smallholder pigs value chain development: Situation analysis and trends Major disease constraints: morbidity, mortality rates and control strategies Major pig diseases and pests in Uganda are summarized in Table 28 (below). Respective pig disease clinical signs, treatment and control are also presented in the table: Table 28. Common diseases of pigs in Uganda Diseases impact Clinical signs Treatment Control/prevention African swine fever (ASF) can easily kill an entire flock Fever, dullness, loss of appetite, huddling together, incoordination of movement, coughing, dis-colouration of skin to bluish, fluid eye and nose discharges, gasping, vomiting, and bloody diarrhoea There is no treatment for ASF and no known vaccine yet. One can attempt control measures only Foot and Mouth Disease can be Fever and vesicles on the Advisable to, including transmitted to/from cattle, goats, coronate and sometimes on the vaccination sheep lips and tongue Gastrointestinal and pulmonary parasites reduce productivity Mastitis, Metritis, and Agalactia (MMA) Inflammation of the udder caused by different types of bacteria Piglet anaemia often appears mostly in piglets of 3 weeks of age Poor growth rate and poor performance of pigs. Coughing in the case of lung worms Sows fail to release milk after farrowing. The udder may be swollen and painful Pale mucous membranes and skin, dullness and diarrhoea Antihelmintics like Levamisol and Piperazine Use antibiotics and oxytocin Give ferrous sulphate injections or oral formulation Control of ticks to reduce transmission from wild to domestic pigs. Restrict movement of pigs or meat from affected areas to avoid exposure to susceptible pigs. Slaughter of all pigs on the affected farm followed by disinfection of premises Slaughter of pigs in the affected houses, and use of vaccination Deworm pigs every three months after weaning Good hygiene in the pig pen Put red soils in pig pen or give iron injection to young piglets Swine Erysipelas could result in mortality of pigs Sudden death, loss of appetite, red and bluish appearance of the skin and ears. Diamond shaped skin lesions which may become necrotic Use Penicillin as the drug of choice Clean the pen and disinfect. Treat the in contact pigs with penicillin Lice reduces productivity Lice will be seen in the folds of the skin especially in the neck and at the base of the ears Use insecticides, ivermectin/ Ivomec and tactic-acaricides Routine spraying or tactic treatment with acaricides Parakeratosis reduces productivity Footrot lameness in finishing pigs, sows or boars Similar signs to those of mange, but with no itching and scratching Some form of defect or penetration of the wall of the hoof that leads to painful and swollen claw and cracks at the sole hoof junction. Walking on tip-toe, with paddling or goose-stepping gait, and reluctance to rise and move and sitting on their haunches Give zinc formulations like zinc carbonate or zinc sulphate Paring septic hoof lesions to expose the seat of the problem, bandaging, and also amputation. The surface of exposed, cleaned lesions may be sprayed with antibiotic, e.g. tetracycline or dusted with an antibiotic wound powder. Injecting the animal with a course of antimicrobial such as tetracycline or ampicillin by injection Ensure that there is enough zinc in the diet Improving hygiene and management, especially floor quality by reducing moisture and resurfacing rough floor. Paring septic hoof lesions to expose the seat of the problem. Pigs should be run through foot baths containing 5 10% formalin 2 3 times a week where problems have been experienced with infection. Ensure that the biotin level of the ration is adequate, particularly in the gilts of the herd

73 Uganda smallholder pigs value chain development: Situation analysis and trends 63 Diseases impact Clinical signs Treatment Control/prevention Salmonellosis health problem to Fever, discoloration of skin, and Treatment with antibiotics Biosafety the public, and can be fatal to pigs death Trichinellosis a zoonosis Heavy infestation causes diarrhoea, muscle pain, and respiratory failure None None Tuberculosis a zoonosis Depends on system affected Not advisable Not advisable Cysticercosis a zoonosis Muscle pain in heavy infestation None Prevent control with vectors Note: Adapted from Twinamasiko (2001a), and MAAIF and NAADS (2011). Morbidity, mortality and case fatality In September 2012, the Livestock Data Innovation Project of the International Livestock Research Institute (ILRI) conducted a focus group discussion (FGD) of pig farmers in Wakiso and Mukono districts. Farmers estimated the relative morbidity and mortality of the five most important pig diseases (i.e. African Swine Fever (ASF), worms, mange, coughing and diarrhoea) using the proportional piling technique. Results of this estimation indicate a total morbidity (from all five diseases) of about 31%, while that of mortality from all the five diseases was found to be about 23%. The main pig health constraint in the country is the frequency of ASF outbreaks, for which there is no vaccine at the moment. According to the farmers FGDs conducted by the Livestock Data Innovation Project in Wakiso and Mukono districts in September 2012, ASF often leads to high levels of morbidity (about 16%) and mortality (16%), and 100% of fatality level. It is followed by helminthosis, diarrhoea, mange and coughing, with case fatality levels of approximately 75, 50, 40, and 25%, respectively. Unlike ASF that is responsible for most of the morbidity and mortality in Uganda, morbidity of each of the other diseases ranges from 2 5%, while mortality level is estimated to range from 1 3%. However, in Uganda there is need for more research to quantify the impacts of the most common diseases in different pig production systems. Trends: Morbidity, mortality, imports of veterinary pharmaceuticals African swine fever (ASF) has been the main threat to the development of the pig sector in Uganda and the rest of Africa since 1994 when the disease re-emerged on the continent. The disease is highly contagious and has mortality rate of near 100%. Although it is well-known that humans are not affected by ASF, the consumption of pork coming from diseased pigs is not recommended, because disposed bones and meat residues could be the source of infection for other animals. Nevertheless, there are people in Uganda who choose to disobey the quarantine imposed by veterinary service providers in areas infected with ASF. There are extreme cases where infected pig carcasses are smoked for cheap sale instead of burying it. Such behaviour interferes with the effective control of the disease spread (UN 2012). Given that there is no vaccine for the ASF disease, there is need to conduct risk analysis, understand the situation in the country, and disseminate information on the potential consequences of ASF and the rationale for diseasecontrol strategies. Currently, the only means of control is by compulsory slaughter and restricting the movement of potentially infected pigs.

74 64 Uganda smallholder pigs value chain development: Situation analysis and trends Factors that have been influencing trends in use Although diseases are one of the major constraints for improving pig production in Uganda, farmers are increasingly becoming aware of the availability of veterinary services that have also increased lately in outreach. Several service providers for animal health are reported to be available in all the districts of Uganda. These include government veterinary services, community based animal health service providers, drug shops, and private veterinary services. Noteworthy is that the most frequently used providers are drug shops, who often help pig farmers to treat their animals. Drug shops are frequently the source of the much needed information on animal health for pig farmers. With exception of ASF, the other diseases are easily preventable. However according to farmers, some of the factors that contribute to poor control of diseases are: (i) high cost of veterinary services, (ii) high cost of veterinary drugs, and; (iii) availability of fake, expired and ineffective drugs in the market. 10 Policies influencing access and use of veterinary services The National Veterinary Drug Policy (2002) aims at controlling (i) the supply of veterinary drugs, (ii) improve the legislation and inspection of veterinary drugs, and (iii) supervise the licensing of veterinary drug outlets. However, the slow growth of the private veterinary sector continues to limit access to clinical veterinary services and veterinary drugs (Kasirye and Denormandie 2012). The Directorate of Animal Resources has not put in a mechanism to work with the ministry of Health to enforce drug regulation. There is no debate on how to improve the delivery of veterinary services in the country; however, there is room to improve the coordination between veterinary service providers at MAAIF, the local governments, and the private sector. There are concerns that the existing parallel provision of veterinary service may not be effective in transforming livestock farming. The traditional veterinary service provision is under MAAIF, while the private veterinary extension is largely under NAADS. Incidences of power struggle, intrigue, and high turn-over make the two types of service providers less effective. The Government of Uganda is pursuing an agricultural led economic growth, and is implementing several development plans that include: the National Development Plan, the Plan for Modernization of Agriculture (PMA), the Bona Bagaggawale (Prosperity for All) PFA initiatives, Rural Development Strategy and related policy initiatives, all of which are helping to strengthen the collaboration between MAAIF with such autonomous agencies as the National Agricultural Advisory Services (NAADS), the National Agricultural Research Organization (NARO), the Dairy Development Authority (DDA), the National Animal Genetic Resource Centre and Data Bank (NAGRIC and DB). Different information that is shared among stakeholders is vital in reducing poverty and creating further demand for veterinary service among livestock producers. 10. Information gathered by ILRI s Livestock Data Innovation Project (LDIP) in FGDs conducted with pig farmers in Mukono district in August 2012.

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76 66 Uganda smallholder pigs value chain development: Situation analysis and trends Inputs and services: Genetics This section provides a summary of breed composition of the national herd and access to improved genetics. It is important to note that there are no commercial breeding services for pigs in Uganda. Most pigs available have no distinct breeds, tend to be cross-breeds of a variety of breeds introduced in the 1960s from other countries (FIT Uganda 2010, ILRI 2011), whereas the so-called local pigs are declining. A recent report (MAAIF 2011) indicates an increase in the production of semen (consignments) and other outputs at the Uganda National Animal Genetic Resource Centre (NAGRC). For example, pig germplasm (i.e. the breeding stock) available to farmers is indicated to have increased from 106 in 2005/06, to 148 in 2008/09, and to 218 in 2010/11. In general terms there are three types of pig farms, namely: breeders specializing in producing piglets; growers/ fatteners who buy piglets and keep them on farm until animals reach market weight; and the non-specialized who practice the two types of activities. The selection of pig breeds is often based on various characteristics, namely the ability to grow faster, produce a large litter size (number of piglets born), and nature of feed requirement compared to other types of feeds farmers have. The latter is important because most pig farmers feeds represent about 70% of the total cost of production (MAAIF and NAADS 2011), and this compels them to use feeds economically. Mating methods and availability of replacement animals In Uganda, the use of artificial insemination (AI) in pigs is still limited. Farmers rely on natural mating using the breeds available in their farms or within the neighbourhood. Although most farmers recognize the importance of selecting carefully the sows and boars for mating in order to minimize inbreeding, upgrade their animals, and control diseases, many times the availability of high quality boars limits the selection of options. Moreover, the level of inbreeding tends to be high in smallholder pig farms in Uganda, thus affecting productivity. The availability of high quality pigs is still very limited in Uganda, for both large-scale and smallholder pig producers. Practically, farmers are not aware of any national institute that produces good pig breeds; therefore they continue relying either on their own replacements or the neighbours. Some get improved animals from prominent farmers in the neighbourhood or those distributed by NAADS, but the coverage of both options is limited, and the cost of improved animals could also be a big constraint for smallholder pig farmers. Pig farmers face significant constraints in terms of genetic improvement of their stocks; the major ones include limited access to good pig breeds that can ensure high productivity and good income; limited access to information on traits that characterize high productivity of pigs; lack of new replacement females in any of the government institutions, and the inability to keep records and mating practices. And while these constraints are responsible for low pig productivity in the country, they also seem to be aggravated by lack of capital on farms, and limited access to adequate information and training.

77 Uganda smallholder pigs value chain development: Situation analysis and trends 67 Structure of animal genetics sector: Public and private sector, major actors There is no well-defined structure of pig genetics and breeding in Uganda. Whereas the public structure is almost non-existent, the private sector in this type of business is yet to take-off, at least compared to dairy cattle. There are reports of few private people that have imported the exotic sows and boars of the Cambrough breed type 11 from South Africa. These are breeding piglets for sale to other farmers, even when their activities appear not to be well regulated according to the Uganda breeding Act (GOU 2001). The breeding Act recognizes the National Animal Genetic Resources Centre and Data Bank to provide for the promotion, regulation and control, marketing, import and export, and quality assurance of animal and fish genetic materials, and also to provide for the implementation of the national breeding policy. According to the breed Act, no pig or other animal breed should be imported or exported out of the country without first obtaining a permit from the Commissioner of Livestock Health and Entomology. This is to ensure that the animal is free of the disease agents and other prohibited hereditary defects. Composition of national herd: exotic/crossbred/indigenous There is limited information on the type of specific breeds and breeding practices in different pig production systems. However, a combination of extensive breeding and poor nutrition in Uganda may be the cause of reducing average size of pigs when compared to their parent stock (Twinamasiko 2001b). In terms of colour, pigs in Uganda can be white, black, or black and white. This is in contrast with the black colour of the so-called local pigs, which are considered to be indigenous. The domestic pig herds in Uganda are a mix of European breeds (not indigenous) that were introduced to the country. Most of the animals are cross-breeds between different exotic breeds, while others are kept as pure breeds (Twinamasiko 2001b). Several exotic pig breeds can adapt well to the local conditions, but some require better management and nutrition to express their potential. Details of these pig breeds are summarized in Table 29. Table 29. Different pig breeds, performance traits, and breed constraints in Uganda Pig breed Performance traits and constraints Landrace, originates from Denmark Large White, originates from Yorkshire in England Hampshire breeds, originates in Britain Duroc Wessex saddleback, originates from Britain Cambrough Various cross breeds (local vs. exotic) White in colour, superior growth rate, high quality carcass. Large size animal with long body; has strong legs; have many teats (more than 12); can litter up to 14 piglets; adaptable to local weather, and; face conformation appealing to buyers. Have long ears pointing out to the front White in colour, large size animal but short in length, late maturing, good mothering ability, large litters up to 16 piglets, fast growth, many teats (10 12), requires large amount of water and feeds, conformation of face not appealing to the buyers, and pork is light coloured and somewhat fatty Black, meatiness, good carcass quality and high meat yield Dark red, fast growth rate, good mothering ability Black in colour with a white saddle over the shoulders and forelegs, hind feet and legs are black, good mothering, large litters, a good grazer/forager Very large animal resultant of the triple cross of Large White Duroc Landrace, good growth rate, many teats (16 18), farrows up to 18 piglets, good mothers. They are aggressive animals, piglets are delicate and require a lot of care, adversely affected by the weather, notably on their skins, high feed requirements therefore do not grow well when fed locally available feeds, pork light in colour and somewhat fatty Variety of colours (white and black), hardness, adaptable to local weather, large litters 8 12 piglets/litter, grows fast, small in size, average mothering ability, and produce the best quality of pork (dark and soft) for the market. Local breeds Are used to eat locally available feeds, therefore are cheap to rear, are well adapted to the local weather, very resistant to diseases, have 10 teats, have hard skins, are small animals, grow slowly, produce 5 8 piglets in a litter, pork has a high fat content, are aggressive and stubborn, and never seem to eat and get satisfied Source: Adapted from Twinamasiko (2001a); Mutetikka (2009); and ILRI focus group discussion of pig farmers from Mukono district. 11. A triple cross of Large White Duroc Landrace.

78 68 Uganda smallholder pigs value chain development: Situation analysis and trends Herd composition, use of improved breeds and artificial insemination Little is known about the herd pig herd composition in the country. However, a recent study in Wakiso district (located in Central Uganda) shows that about 67% of pig farmers keep cross-breeds, 28.1% keep exotic (Landrace/ large white) pigs, while only 4.4% that keep Local breeds (Muhanguzi et al. 2012). Cross breeds of the local breeds with Landrace and Large White constitute the most dominant breeds, followed by exotic breeds and lastly local breeds. Policies influencing breed choice, AI access and use The Animal Breeding Policy (1997) and Act (2001) provides guidelines to farmers, investors, researchers, extension workers (Advisory Service Providers) and civic leaders on suitable breeds for the various agro-ecological zones and production systems. The policy seeks to improve alternative breeding programs; trade in genetic materials; breeding and management systems for conservation and suitable use of indigenous genetic resources and use of modern breeding technologies in the country (Kasirye and Denormandie 2012). However, lack of funding and institutional weaknesses in the administrative structure has not produced good service to livestock farmers in general, but especially those in the pig sector. Right now there is no practical breeding program being implemented in the country. Some individuals import exotic boars and sows and breed piglets for commercial purposes, but this is also not well regulated. The National Breeding Policy is in particular silence on pigs, but there is need for identifying good pig breeds for different production systems and feeding practices prevalent in the country. Current policy issues under debate regarding pigs genetics Unfortunately, government documents, media reports and farmer forums are not actively involved on issues of pig genetics. This can be attributed to limited or non-existent literature on the performance of different pig breeds in Uganda. There is need to stimulate such debate through evidence based research on pigs. No doubt, pig farmers are likely to make big strides, if they are supported with access to affordable credit, training, extension services, veterinary services, improved infrastructure and good breeds. Solving and addressing specific challenges of the smallholder pig producers will begin with equipping them with ability to screen appropriate exotic boars and replacement sows to produce good pig breeds and quality pork.

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80 70 Uganda smallholder pigs value chain development: Situation analysis and trends Inputs and services: Feeds This section highlights the conditions of pig feeding practices and the feed sector in Uganda. Research evidence shows that the cost of feeds accounts for about 70% of the total cost of producing pigs in the country (Mutetikka 2009). The high cost of feeds is an important constraint, and clearly justifies optimal use of feeds. Feedstuffs of animal origin are usually richer in high quality proteins, but are more expensive than those of crop origin. Therefore, to increase feed efficiency, farmers have to mix feedstuffs in different proportions. Most pig farms in Uganda, especially those that operate close to major urban areas, practice intensive feeding system, where pigs are confined in pens throughout and fed indoors. The pig housing or structure tends to be made of a concrete floor, wooden walls and a roof with corrugated iron sheets. In the rural settings, however, a substantial proportion of pig farmers practice the semi-intensive and extensive pig production system, where pigs are partly or fully allowed to scavenge for feeds. Tethering pigs is common particularly during the cropping season, in order to avoid damage on growing crops. However, the adoption of intensive (total confinement) system of feeding is increasing, a development that can be attributed to such factors as land scarcity and improvement in access to information about the commercial production of pigs. The feeds more commonly used in pig feeding include maize bran obtained from local millers, crop residues such as banana and cassava peels, sweet potato vines, cassava leaves, fish meal locally known as silver fish (mukene), own kitchen waste, restaurant wastes (swill), cut-and-carry green forages and farm weeds(mutetikka 2009). Some pig producers also use commercial feeds, mainly brans and also the compounded type, especially during the dry season. In the wet season, pig farmers mainly use such feeds as cut-and-carry green forages, crop residues, and some kitchen/ hotel wastes (obtain from own kitchen or purchased locally). Several types of cut-and-carry green forages are commonly used for pigs. The main ones include sweet potato vines, elephant grass, wondering jew (Ennanda), Amaranthus (dodo), kafumbe and many other garden weeds. Although some vitamins can be obtained from the feeds, they can also be provided to animals as part of the vitamin mineral premixes. Minerals are derived from lake shells (busonko), bone ash, common salt, soil, and vitamin mineral premixes. Water is also supplied to pigs, but in many cases is neither clean nor provided in enough quantities and frequencies. Proteins for pigs are obtained from feedstuffs of animal and crop origin, and these include: fish (mukene) meal, blood meal, poultry waste, fish processing waste, soybeans, beans, cottonseed cake, and sunflower cake. Energy is particularly obtained from carbohydrates (starch and sugars) from feedstuffs such as cereal grains (i.e. maize, sorghum, millet, wheat); cereal processing by-products (maize bran, wheat bran, rice bran); roots and tubers (cassava, sweet potatoes, yams); fruits (banana, jack fruits, avocado), cane molasses, and animal fat. Structure and feeding practices in the pig feed sector Three different types of commercial (compounded) pig feeds are utilized in Uganda namely: creep feed; grower feed, and sow and weaner meals. Creep feed is for piglets between two weeks of age and before they are weaned; this commercial feed is highly digestible, rich in protein (20 22%), and often contains powdered milk in its formulation.

81 Uganda smallholder pigs value chain development: Situation analysis and trends 71 Grower feed is used to feed pigs after weaning, and contains 14 16% of proteins. Sow and weaner meal is fed to breeding animals such as gilts, sows and boars. These feeds can be obtained from local manufacturers or produced at farm level. Care should be taken when selecting and mixing various feed ingredients at farm level (Mutetikka 2009). It is crucial to avoid or reduce to a minimum the use of high cost cereal grains that tend to be expensive due to a greater demand by humans. Unlike soybeans, most crop specific feedstuffs contain low levels of protein. It is also important to minimize certain substances in feeds that inhibit proper digestion in pigs. This can be achieved by either roasting, or boiling some plant specific feedstuffs such as soybeans, beans, and cabbages. The structure of the commercial pig feed sector comprises of mainly private feed producers, the majority of whom operate at small-scale in the informal market. The formal market is dominated by large-scale producers of compounded feeds and suppliers of ingredients to small-scale feed compounders. The feed market is not well regulated, and this has encouraged some commercial farmers to produce their own feeds on farm. Pig farmers complain of poor quality feeds that are supplied by small-scale producers and traders who tend to use poor quality/inadequate proportions of various ingredients. Farmers are lured into buying cheaper feeds that is of very poor quality. Consequently, most large-scale producers such as unga feeds are scaling down the production of compounded feeds and instead concentrate on the supply of ingredients to small-scale feed producers. There is need to ascertain the extent to which the existing market is shared between small and large-scale feed producers. There is also need to conduct research on the gender dimensions that exist or characterize the operation of formal large-scale and informal small-scale market of feeds, fodder, forage, and seed marketing in Uganda. Information on feed production and pig feed sales in Uganda is limited, and it is non-existent when it comes to the disaggregation by gender and production system. What is clear though is that pig farmers face feed shortages during most periods of the year. This is especially the case during the dry season when the demand for purchased feeds is greater; hence the price of commercial feeds tend to increase. During this period, opportunistic traders take advantage of the ignorance of farmers to sell poor quality feeds. There is need to regulate, enforce standards, and supervise the actors in the feed industry. Currently, most farmers use whatever animal feeds available on the local market, and rarely practice any form of feed preservation. Pig farmers need to be encouraged to choose well defined feeding strategies and good quality feeds, in order to increase productivity A recent study on pig production in the Central region of Uganda reveals that the majority of pig farmers (about 60%) use cassava, sweet potatoes and crop residues (sweet potato vines, banana peelings). A substantial proportion (24%) all pig farmers feed their pigs on grasses like Pennisetum purpureum, Commelina banghalensis, and Biden pilosa, while 16% of the farmers feed their pigs on ruminal contents from the local abattoirs (Muhanguzi et al. 2012). The majority of pig farmers provide feeds to pigs once or twice a day, while it is uncommon to see farmers providing feeds ad libitum. A mixture of commercial and other types of local feeds is used to feed the pigs. Nutritional deficiencies manifesting the nature of being stunted and poor growth rates are reported on those farms that mainly fed their pigs on grasses and other plant residues. To the extent therefore that pigs compete with humans for key feed ingredients such as maize, soybean and fish, the cost of feeds will remain high and above the reach of most smallholder pig producers in Uganda. For instance, there has been an increase in the price of the main sources of carbohydrates and proteins for humans and pigs, a factor that can be attributed to climate change. Food production is now characterized by prolonged droughts, heavy rains, flooding and landslides in some parts of the country affecting crop yields. Lack of financial capital and access to information leads to use of poor quality feeds and feeding practices. Most of the feeds on the commercial market is adulterated and are of poor quality due to inadequate feed ingredients. Most smallholder farmers are not aware of suitable feed ingredients and/or proper formulation to produce good quality compounded feeds. This has not only increased the price of available feeds, but also reduced the productivity of pig farmers that have adopted improved pig breeds. It is widely agreed that improved breeds cannot perform well on locally available feeds.

82 72 Uganda smallholder pigs value chain development: Situation analysis and trends Trends in production of crops used for feed and sale of commercial feeds The continued use of local feedstuffs in pig production has become a dire and big constraint. This is especially the case in urban and peri-urban areas where production of these feedstuffs is limited. Farmers are increasingly adopting the use of food residues from hotels and food left-overs in homesteads. The situation is further exacerbated by competition with humans on farm produced food, especially during the dry season that is characterized by food scarcity. Consequently, the use of commercial feeds in the country is becoming more important, partly due to limited access to locally produced feedstuffs, but the problem of inadequate formulation and adulteration of compounded feeds limits productivity. There is need to generate new research-based innovations and practices that can help pig farmers to increase feed efficiency by making better use of the locally available feedstuffs. The stiff competition and politics between small-scale and large-scale producers has therefore created negative outcomes on feed production. For example, large-scale feed producers are scaling down the production of compounded feeds as earlier mentioned, to instead concentrate on the supply of feed ingredients to small-scale feed compounders. Whether this is a strategy of small-scale producers to squeeze out large-scale companies out of the market, or simply a sign of failing feed sector, research evidence is needed on how to protect pig farmers from being victims of input traders who sell fake inputs, including animal feeds. Poor regulation of input trade, lack of quality control, and the failure by authorities to crack down all those selling and supplying fake agriculture inputs has let down pig farmers in Uganda. Borders with neighbouring countries are porous, and this increased the influx of fake inputs and feed ingredients, as well as the transport of feeds to neighbouring countries. The liberalized nature of government policies on agricultural input and output markets allows every individual to participate in the domestic exchange and importation of animal feeds, even without first seeking clearance from the Authority. The lack of screening of who does what in the agricultural input trade, has failed to control fake inputs from entering the domestic market. The cost of commercial feeds has been fluctuating, thus affecting consistent feeding practices. The cost of 100 kg of pig feeds is estimated to be about UGX 120,000 (USD 50). The cost of other inputs such as drugs, acaricides, and building materials is also on the increase which affects the potential profitability of piggeries. Labour availability is a big constraint. Labour costs have also been increasing, yet they comprise about 15% of total farm production costs (Mutetikka et al. 2009), this is particularly true in the case of commercial piggeries which demand labour to feed the pigs and clean the pens. Policies influencing production and use feeds Animal feeds are to be mixed and processed in a way that does not affect the health of animals; hence, the need to use good quality feed ingredients and suitable technology in feed production. Several policies and laws are in place to govern the processing and sale of compounded animal feeds including the National Animal Feeds Policy (2005) that aims at developing the animal feeds industry to further improve animal production and productivity. The policy emphasizes the importance of the private sector in spearheading the supply of quality animal feeds. Nevertheless, there are still challenges related to the implementation of this policy. The Draft Bill (legal framework for implementation) of the policy has not been approved to provide a legal framework that is vital in guiding feed producers, traders, and regulators in the feed sector. Other related policies include the Food and Drugs Act that has been in operation since 1959 and requires that all premises of feed production be registered to allow for easy supervision by the authorities. The Public Health Act aims at minimizing poor hygiene in relation to premises used to process feeds and in all related activities. The involved personnel and feed handling procedures should uphold high level of hygiene.

83 Uganda smallholder pigs value chain development: Situation analysis and trends 73 The National Agricultural Advisory Services (NAADS) Policy establishes the need to train farmers on how to select good agricultural inputs; the National Trade Policy emphasize the importance of fair trade to enable traders to move out of poverty to prosperity, and the Uganda Food and Nutrition Policy 2003 emphasize the importance of good feeding and food quality such as well produced pork. The Uganda National Bureau of Standards Act mandates the Uganda National Bureau of Standards to formulate national standard specifications for various commodities and codes of conduct and also to enforce standards. The standards protect the public from factors such as harmful ingredients and dangerous components. The Act also establishes fair trade in terms of standard measurements (net weight) that protect buyers from being cheated by unscrupulous pig producers and traders. The amount of weight declared on the label should be the net weight of feeds in the package. However, almost all these policies are lacking when it comes to enforcement of the specified standards. Farmers will continue to complain about feeds that are not meeting standards, until there is improvement in the way standards are enforced in the country. In spite of all regulations, the media frequently refers to problems of fake/adulterated feeds in the local markets. The question is how to increase the capacity of feed producers that are currently selling poor quality feeds that are not meeting the standards. It is widely believed that targeting potential quack feed producers, those who sell the so-called fake feeds due to ignorance or lack of standardization of the ingredients, with the aim of improving their capacity, may generate greater private and social benefits, than putting a mere ban on their operations that are also largely informal by nature. After all, they are much accepted by farmers partly due to their passion and interest in conducting their own extension services. However, those who adulterate the feeds on purpose should be punished in order to discourage the vice. There is also a push to help farmers reduce risks of using/preparing feeds that do not meet the standards. Farmers can be trained to get the required skills and also to compound their own feeds; however they will also need ingredients that are not adulterated. Right now some of the bills on livestock production (such as feed bills) are not yet incorporated into Government Act that can be implemented. There is a need for having those bills passed into useful legislations. The question is how to ensure that the National Drug Authority (NDA), Uganda Bureau of Standard (UBS) and Uganda Police have appropriate capacity and resources to regulate and monitor agricultural input trade in the country. All input traders found guilty need to be prosecuted in the courts of law, and this is happening to a less extent. Feeds should be properly labelled, there should be official laboratories for quality control, and feed producers should be registered, supervised and allowed by authorities to operate based on the quality of feeds they produce. This should apply to not only compounded feeds but also the feed ingredients as well

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85 Uganda smallholder pigs value chain development: Situation analysis and trends 75 Inputs and services: Knowledge systems This section discusses farmers access to information on pig technologies, markets, and innovation capacity. It is well known that smallholder pig farmers in Uganda have limited access to extension advice and veterinary services. Since the implementation of the National Agricultural Advisory Services (NAADS) program in 2001, agricultural extension service has been hotly debated in this country. Conceived as a demand-driven approach and largely publicly funded with services provided by the private sector, the NAADS program targets the development and use of farmer institutions (Benin et al. 2011). It is a key strategy in the government s poverty-reduction and national development plan. The government is running a parallel system of extension services with traditional extension services conducted by district veterinary officers, and NAADS providing core extension services. It is clear that NAADS has no mandate to engage in the diagnosis of animal diseases, improvement in animal health, regulation of food safety and treatment of diseases. The government extension service through the NAADS programs, veterinary officers in the districts, fellow farmers and some NGOs provide pig farmers with vital information and training on modern pig farming practices. The information ranges from selection of breeds, feeding practices, disease control, and general pig husbandry. The Ministry of Agriculture in conjunction with NAADS distributes written manuals on pig and other livestock husbandry to farmers, in addition to having demonstration farms. However, record keeping is low in smallholder pig farms, except for those who keep exotic breeds and cross-breeds. These tend to be large-scale farms, which use the records to keep track of performance of different breed types, diseases incidence, treatment costs, litter size and sales, among various data. Structure of knowledge sector: R&D and public extension capacity There is no clear government policy that specifically focuses on pig production and related gender dimensions. The breeding and management programs that are geared to pig farmers are still very limited. Since 2001, the government adopted a demand driven approach through a largely publically funded and decentralized farmer-owned NAADS program but with technical assistance services provided by the private sector. The NAADS program represents a shift by government from a top down approach that used to be publically funded, with services provide by public agents. It is a key strategy for implementing government s poverty reduction and national development plan. The aim of NAADS program is to empower economically active poor farmers in a sustainable manner. The program facilitates the process of group formation, capacity building, and institutional innovations that are crucial in improving access to information and local demand for research and productivity-enhancing agricultural advisory services and technologies (MAAIF and ITAD 2008). And while the advisory services provide technical assistance, knowledge and skills on a demand-led basis to empowered farmers, together with material inputs (through demonstrations and a revolving fund) for agricultural production and marketing, few pig farmers appear to be benefiting when compared to other enterprises.

86 76 Uganda smallholder pigs value chain development: Situation analysis and trends The Ministry of Agriculture, Animal Industries and Fisheries (MAAIF) has the responsibility of overseeing the operation of NAADS program, but it is not directly involved in the implementation or monitoring of the program. The Ministry of Finance and Economic Development provides support and funds to the NAADS Secretariat. The program is implemented at subcounty level by Local Government (LG) extension staff, private service providers, and the newly formed farmer institutions (village groups, community-based facilitators, farmer contact groups). Local Government staff plays an essential role in NAADS through supervision, monitoring and guidance. The program is coordinated by the NAADS Secretariat, district NAADS Coordinators (DNC), subcounty NAADS coordinators, local government staff, and private sector firms that are contracted to provide advisory services to farmers. Initially, NAADS offered to support six enterprises in each subcounty. This has since been reduced to three enterprises, which may fall in the category of commercial enterprises, basic food crops, small-scale livestock and poultry enterprises. Interference by powerful politicians is however blamed for adoption of unpopular enterprises that often fail to materialize (MAAIF and ITAD 2008). It is for this reason that key enterprises such as piggery receive less support compared to other enterprises. Apart from NAADS that is a government s regular extension service, there are other non-governmental organizations and special projects such as VEDCO, VECO, World Vision and CARITAS that provide agricultural advisory services even in areas where NAADS operate. Investment in pig research and extension services Little is known about public investment in pig research and related gender bias in Uganda. Very few studies have been done on pigs. The trend on pig research appears to be increasing, especially at the major universities. However, there are no records on the level of resources allocated to different types of livestock research, the number of research and extension personnel that are actively involved in the promotion of piggery, and the time devoted in the sensitization of pig producers. NAADS program is helping to strengthen the institutional capacity and human resource skills of many farmers, including pig producers to potentially demand and manage the delivery of agricultural advisory services and to meet their local production and market conditions. The program encourages farmer participation in demonstrations, but also promotes interventions that can reduce farmer constraints in the areas of liquidity constraints, feeds, practices and information. In a recent study (Benin et al. 2011) assessed the impacts of and returns to Uganda s public spending in agricultural advisory services. The study indicates that a total of 36 enterprises (29 crop and 7 non-crop enterprises) were being promoted by NAADS. However, not all the enterprises are being promoted by NAADS in each subcounty. Figure 19 indicates major crop and livestock enterprises that are widely promoted by the agricultural advisory services based on the number of subcounties involved in the enterprise promotion. Figure 20 further shows variation of the number of technology development sites (TDSs) established and the number of farmer groups directly benefiting from TDSs for major enterprises promoted. Figure 19. Promotion of major crop and livestock enterprises (number of subcounties in which promoted), Adapted from Benin et al. (2011). Adapted from Benin et al. (2011).

87 Uganda smallholder pigs value chain development: Situation analysis and trends 77 Figure 20. Number of technology development sites (TDS) established for major crop and livestock enterprises and number of farmer groups benefiting, The study therefore reveals that major crop enterprises that are widely promoted at farm level include bananas, groundnuts, and rice followed by vanilla and maize. In the case of livestock and related enterprises, these include goats, poultry, and bees, followed by cattle and lastly pigs. It is therefore clear that piggery is among the least promoted livestock enterprise in the country. Nevertheless, the majority (about 90%) of the farmer groups appear to be finding various areas of training and capacity-strengthening activities very useful. Bashaasha et al. (2012) examined the extent to which households in six districts of Uganda access various information and extension services that are important for pursuing their livelihood strategies. Study results from the crosssectional survey data analysis are summarized in Table 30. About 42% of the households included in the study reported having access to extension services from NGOs, other development partners, and the government through local governments and NAADS programs. Access to extension services is highest in Rakai district, followed by Arua, Mayuge, Kabale, Gulu and is least in Kasese. It is evident that the most highly provided information relates to HIV/AIDS incidence, HIV treatment, care for HIV/AIDS patients, followed by plant protection, types of seeds, crop agronomy, planting time, and the use of fertilizers. Only 21.8% of the households received information about the use of animal feeds, 19.5% received information related to use of veterinary drugs, about 17.7% received information related to the marketing of their produce, while only 4.8% had

88 78 Uganda smallholder pigs value chain development: Situation analysis and trends access to information related to artificial insemination. Farm households receive on average less livestock related advisory services when compared to crop and health related information (Bashaasha et al. 2012). It is therefore vital to increase farmers access to information related to animal health, feeding, food safety issues, if the livestock production, including piggery, is to improve in the country. Table 30. Access to various types of information and extension services in the six districts of Uganda (2012) District Arua Gulu Kabale Kasese Mayuge Rakai Overall Total number of observations Has access to extension services (52.4) (40.3) (41.9) (38.7) (42.4) (79.4) (41.9) Type of information provided Per cent Per Per cent Per cent Per cent Per Per cent cent cent Types of seeds Plant protection Use of fertilizers Planting time Crop agronomy Animal feeds Veterinary drugs Artificial Insemination Market information HIV/AIDS HIV treatment Care for HIV/AIDS patients Nutrition and food utilization Note: Figures in parentheses are percentages Source: Bashaasha et al. (2012) Factors influencing trends in knowledge provision The farmer quest for labour saving technologies such as the use of pesticides as opposed to manual weeding is considered to be playing a significant role in participation in the NAADS program. The type of income source also plays a key role in influencing whether farmers choose to demand a specific knowledge provision. This is true for farmers that derive major income from livestock and non-farm enterprises (Benin et al. 2011). The longer the extension services operate in the community, the less likely farmers will continue demanding crucial information in a specific program. This is attributed to the limited receipt of grants, increasing cost of participation relative to benefits, and the discouragement from the failure of their proffered enterprises. Contrary to popular views that agricultural extension services induce participants to establish new enterprises and to adopt improved technologies, evidence from Uganda seems patchy. Indirect participation on agricultural extension programs are found to increase exposure and demand for agricultural advisory services than is the case with direct participation (Benin et al. 2011). It is not always the case that direct participation in programs that promote access to advisory services leads to adoption of a new and improved crop or livestock enterprise, technologies or practices. However, direct participation is shown to induce greater average effect on livestock productivity than on crop productivity. A study in Uganda shows that NAADS interventions has failed to improve farm output, productivity and income of farmers in Iganga district (Okoboi et al. 2011). There are concerns that such factors as implementation weaknesses, poor monitoring and evaluation processes, nepotism, and the lack of transparency may have affected the selection of NAADS beneficiaries and enterprises in many districts of the country. Desired levels of adoption can be achieved

89 Uganda smallholder pigs value chain development: Situation analysis and trends 79 if farmers needs drive knowledge delivery to farmer groups, without the interference from politicians and NAADS coordinators. It was indicated that framers should also receive incentives to access inputs from reputable input traders and also enabled to access other pre-requisite requirements of financial and credit services. Otherwise, participating farmers can only adopt technologies that only require additional labour and skills, but which cannot necessarily increase productivity and commercial production. Distance from areas with improved credit services and markets have played an important role in stimulating demand for advisory services. While households located in urban and peri-urban areas (also characterized by better markets and services) can easily access information on their own, those located far from markets need to be targeted with programs that can support technology adoption and interventions that increase commercial production of livestock, including pigs. Policies influencing access to knowledge The provision of agricultural extension and other agricultural support services was a responsibility of the Central Government until 1997, but in that year it was handed over to the Local Governments in accordance to the Local Government Act of 1992 and in line with the decentralization policy of 1993 (Benin et al. 2011, Sserunkuuma and Pender 2001). The policy provides for the decentralization of some core functions of the Central Government to the local governments (districts, urban authorities and subcounties), and these include: (i) animal husbandry extension services; (ii) district project identification, and; (iii) local government development and planning. The decentralization system of governance is meant to help attract investment in the meat industry and to build capacity for the country meat supply for domestic and export markets. Local governments, municipalities and town councils are mandated by the decentralization policy to provide such services as registering farmers, setting standards and guidelines, issuing certificates and permits, enforcing regulations, and monitoring compliance. However, few districts have been able to put in place livestock by-laws. There is lack of commitment to enforce ordinances on food safety and good practices in the management of live pigs and carcasses during and after slaughter. Farmers access to inputs and services has been undermined by high administrative costs and demand for services, probably due to the many local governments that have been created (Kasirye and Denormandie 2012, UPTOP 2006). Furthermore, veterinary officers are recruited by the central government, rather than local governments, a change that may have contributed to poor delivery of veterinary services. The National Policy for the Delivery of Veterinary Services (2001) also aims at improving the delivery of veterinary services with the overall goal of increasing production and productivity of livestock and emphasizes four main areas: (i) promotion of effective provision of veterinary services nationwide, including more remote areas where the bulk of the animals are kept; (ii) promotion and development of an effective and efficient system of veterinary service delivery; (iii) making the role of public services in veterinary service provision clearer, more efficient and more sustainable, and (iv) enhancing the effectiveness of all cadres of veterinary service provided. The prevailing national policies of liberalization, privatization and decentralization, implies the increasing role played by the private sector in bringing services closer to the rural communities. However, the slow growth of the private veterinary services sector and conflicts on who should be responsible for supervision and monitoring of those services between the Local and Central Government Institutions are negatively affecting the delivery of veterinary services in the country. The Government of Uganda is promoting the farm level proportion of market-oriented production through private sector and enterprise based advisory service that is currently covering more than 83% of all subcounties in Uganda. Since 2000, the Government of Uganda has been implementing the plan for modernization of agriculture (PMA), a key policy initiative of reducing poverty and rolling out NAADS program that is also planned to last for 25 years in Uganda. The first phase of 7 years ended in June 2008 (Benin et al. 2011), while the second phase is still ongoing. Until 2009, the PMA and Poverty Eradication Action Plan (PEAP) were jointly implemented to revitalize agriculture as an engine of poverty reduction and overall development. The government incorporated the PMA and PEAP in the five-year National Development Plan (NDP) that prioritizes agriculture among the key productive sectors driving growth in the economy.

90 80 Uganda smallholder pigs value chain development: Situation analysis and trends The government is also implementing the Prosperity for All policy that aims at improving the lives of all Ugandans, the MAAIF s new Development Strategy and Investment Plan (DSIP) 2010/ /15 that aims at improving the private sector investment and raising farmer productivity in selected development priorities. In association with the New Partnership for Africa s Development (NEPAD), the Government of Uganda is implementing the Maputo Declaration on the Comprehensive Africa Agriculture Development Programme (CAADP) that aims at promoting the principle of agricultural-led growth as the main strategy to drive overall national development through the enhancement of production, competitiveness, and income. All these policies have had a positive impact on the provision of agricultural advisory services in Uganda. The most pressing debate on access to knowledge in agriculture and livestock production is on whether to increase funding that is allocated to the overall agricultural sector or to first improve institutions and farmer groups that play a key role in ensuring accountability. It is widely agreed that national goals for agriculture can be achieved if there is adequate funding for advisory services, farmer access to micro-finance, efficiency in input supplies, and improvement in infrastructure. There are attempts to: (i) promote the critical productive sectors of the economy including agriculture that provides employment to the majority Ugandans; (ii) remove infrastructure constraints in transport and energy to facilitate private sector development as the engine of growth; (iii) improve the quality of social services with more focus on education, health and access to water; and (iv) strengthen public sector management for efficient service delivery both in the central and local governments. The activities of NAADS are contributing to the strengthening of training, knowledge, and the provision of physical inputs among farmers (GOU 2012). Government continues to facilitate the emergence of commercially oriented farmer business organizations and providing technical assistance to those that have already emerged.

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92 82 Uganda smallholder pigs value chain development: Situation analysis and trends Inputs and services: Credit The role of the financial sector in enhancing efficient reallocation of resources is well known. This section provides an overview of farmer access to and use of credit in Uganda. It is widely agreed that smallholder producers in rural areas have no access to adequate credit, especially for livestock production including piggery. Yet improved access to financial services can foster pro-poor investment and growth through increased mobilization of savings and the use of savings deposits as a source of investment capital to rural enterprises. Credit market is small, but largely informal as opposed to being formal. In Uganda, financial service providers are categorized into four groups, namely: (i) Tier 1 (includes commercial banks); (ii) Tier 2 (credit institutions); (iii) Tier 3 (micro-deposit-taking institutions, MDIs), and; (IV) Tier 4 (all other financial institutions and associations that are not regulated by the Bank of Uganda, BoU). These providers operate in a financial infrastructure that is generally considered to be underdeveloped. There are about six types of financial Institutions that operate in Uganda. They include the central bank; commercial banks; credit institutions; insurance companies, and development banks and foreign exchange bureaus (SNV and DEMIS Consults Limited 2010). All microfinance institutions are coordinated under the Association of Microfinance Institutions of Uganda (AMFIU). As part of the effort to eradicate poverty, the Government of Uganda has been using microfinance banks to provide credit services to the rural people. However, the level of penetration of this credit service provision is still low. The formal financial system in Uganda to a large extent rations out the rural poor, which affects their performance. Structure of financial sector providing credit to farmers In Uganda, the structure of the financial systems includes all financial institutions, financial markets, and financial instruments, as well as the legal, political and institutional frameworks that govern them. Only 20% of the farm households have access to financial services, and mostly depend on semi-formal and informal institutions that are not regulated by the BOU. Although these institutions make up the backbone of the rural financial sector in Uganda, they are considered to be weak, unable to guarantee reliable credit access, and good returns to poor people s savings. The financial market is constrained by the failure of most financial institutions including commercial banks to expand access to credit to smallholder farmers. This is further exacerbated by unfavourable economic performance indicators such as volatility in price and exchange rate in recent past. This notwithstanding, banking profits are reported to have reduced, while the financial service sector is also reduced by 11.8% in the 2011/12 financial year (GOU 2012). The private-sector credit is stagnant following a long period of rapid growth (GOU 2012). Demand for credit continues to increase amidst the low levels of saving. Ugandans are increasingly getting access to financial services (Agriterra-EKN 2012), despite the reluctance of most commercial banks to supply credit to poor farmers. Smallholders are usually required to meet the requirement of collateral and minimum balances on their account before receiving credit. It is therefore not surprising that about 62% of all Ugandans (whether in farm or non-farm occupation) have limited access to financial services, while the

93 Uganda smallholder pigs value chain development: Situation analysis and trends 83 majority (42%) of Ugandans that receive credit rely on informal financial services channels (GOU 2012). Only 20% of the population have bank accounts. The majority of Ugandans are therefore unable to save in a bank or acquire a bank loan. The use of formal financial services remains very limited. In summary, the financial market in Uganda is characterized by the co-existence of formal and informal financial service providers. 12 And while the formal financial markets comprise mainly of commercial banks, development banks, and credit institutions, the informal sector includes MFIs, MDIs, VSLA, SACCOs and ROSCAs. Farm households that are rationed out of the financial market tend to rely more on sources of family and friends for credit. They are also some who use secret hiding places for purposes of accumulating savings. Access of pig farmers to credit When it comes to the agricultural financing (both short and long-term loans), the agricultural sector is noted to receive only about 10% of the total lending capacity. Agriculture sector in Uganda is therefore suffering from the lack of appropriate financial capital that is vital in spurring meaningful farm investments. Smallholder pig farmers have limited access to credit from financial institutions. These do not value piggeries as collateral to secure a loan. Pigs are considered risky due to the incidences of serious disease outbreaks that can easily wipe out the herds. Pig farmers can only accesses credit from micro-finance institutions (MFI) based on collective responsibility and membership. Each farmer has to pay an entrance fee into MFI. Loans are then given out depending on farmers ability to repay as determined by the MFIs managers. Currently, eligible pig farmers are required to have at least 30% of the value of the loan. The magnitude of the loan depends on the individual savings of the farmer into the group fund and his or her security credentials such as land endowment. Penetration of credit services, volume of loans, recovery rates There is an increase in the number of Ugandans that access financial services. A FinScope report on Uganda shows that about 70% of Ugandans had access to financial services in 2006, with a 57% level of financial inclusion among adult individuals (Agriterra-EKN 2012); however, in the case of pig farmers, there is a low level of access to credit. Muhanguzi et al. (2012) found that about 20% of pig farmers in Wakiso district were not able to access loans. There is need for detailed information on the proportion of pig producers, pig traders, and pig processors that use credit in their investment. This information is currently not available. What is clear though is that the continued perception of farming as a high risk business limits access to credit and loans through commercial banks. The situation is further complicated by the fact that most pig farmers don t have collateral to use in order to secure credit from the microfinance institutions. However, it is evident that since the launching of the Rural Financial Services program, the number of Savings and Credit Cooperatives (SACCOs) across the country has increased to over 2800 (GOU 2012). Membership of financial cooperatives has grown from 644,318 in 2008 to 1,154,714 by December Savings have increased from UGX 54.9 billion to UGX 83 billion. The share capital has risen from UGX 21.5 billion to UGX 44 billion over the same period, while loans have also performed well and currently stand at UGX 122 billion. There are about 180 microfinance companies and related NGOs in Uganda. The Government also recognizes the role of Self Help Groups (SHGs), including the Rotating Savings and Credit Associations (ROSCAs), and Village Savings and Loan Association (VSLAs) in serving the financially excluded. Results from the survey data (by Global Findex database/gallup World Poll) with more than 150,000 randomly selected adults aged 15 and above in 2011, reveals that 20.5% of Ugandans have an account at a formal financial 12. According to SNV and DEMIS Consults Limited (2010), commercial banks provide normal banking services; (ii) credit institutions provide loans, but can also receive deposits savings accounts; (iii) micro deposit institutions allows deposit and can also provide loan facilities, mainly for low income people; (iv) tier 4 MFIs and SACCOs provide loans (and saving facilities in the case of SACCOs) for low income people; agricultural development fund/loan (of various banks such as Centenary and DFCU) lends money to MFIs; (v) money lenders represents all the individuals and firms that lend money, usually at very high interest rates.

94 84 Uganda smallholder pigs value chain development: Situation analysis and trends institution such as banks, credit unions (SACCOs), and microfinance institutions (GOU 2012). Furthermore, about 7.7% of Uganda s rural population uses an account at a formal financial institution for business purposes. The proportion of population with an account at a formal financial institution is reported to be about 25.8% in men compared to 15.1% among women, and it also higher (26.9%) in urban areas than is the case (20.2%) in rural areas (GOU 2012). The majority (about 46.5%) of Ugandans receive credit from family or friends followed by 9.4% from store credit, 8.9% from formal financial institution, 4.6% from a private money lender, and lastly 4.2% from employer (GOU 2012). These statistics are further supported by findings (see Table 31, below) from a FAO study in the six districts of Uganda with the highest population size. Table 31. Access to credit services and sources of credit in six districts of Uganda, 2012 Arua (N = 63) Gulu (N = 63) Kabale (N = 63) Kasese (N = 62) Mayuge (N = 67) Rakai (N = 63) Received Credit 27(42.86) 31(49.21) 35(55.56) 40(64.52) 34(50.75) 37(58.73) Source of credit Banks 4(14.81) 3(9.68) 7(20.00) 4(10.00) 3(8.82) 1(2.70) Microfinance 1(3.70) 5(14.29) 8(22.86) 6(16.22) Lenders 3(8.57) 4(11.43) 2(5.41) Self-help groups 14(51.85) 17(54.84) 3(8.57) 3(7.50) 5(14.29) 20(54.05) Relatives and friends 2(7.69) 4(11.43) 15(38.46) 9(25.71) 14(37.84) NGOs 1(3.70) ROSCAs 5(18.85) 9(29.03) 11(31.43) 14(35.90) SACCOs 1(3.33) 7(20.00) 6(15.79) 10(28.57) 4(10.81) Note: The figures in parentheses are percentages; ROSCAs denotes the Rural Savings and Credit Associations (ROSCAs); SACCOs represents Savings and Credit Cooperative Organizations. Results in Table 31 reveal that on average, about 48% (not shown in the table) of all sampled farm households receive credit services from various sources. The proportion of farm households that receive credit ranges from the highest (64.52%) in Kasese to the least (42.86%) in Arua. Most farm households access loans from self-help groups, followed by Rural Savings and Credit Associations (ROSCAs), and then Commercial Banks in that order of importance. Findings from the Focus Group Discussions in Bashaasha et al. (2012) further suggest that banks and microfinance institutions are the most active financial institutions in the peri-urban and urban areas. They include: BRAC (Uganda), FINCA (Uganda), Centenary Development Bank (CERUDEB), and Finance Trust (Uganda) in Arua district. These institutions provide farmers with business start-up capital and sometimes small consumption loans. Access to credit in the rural areas is mostly through informal and lower tier micro-finance institutions such as the self-help associations, ROSCAs, and the SACCOs. In particular, SACCOs are reported to be transforming livelihoods in urban areas. Informal institutions or lower tier micro finance institutions mostly provide relatively small loans to individuals, groups, and institutions. Besides these financial institutions, some non-governmental organizations including CREAM are extending credit to poor households. The household survey revealed that the most common uses of loans/credit in Arua district include paying for children s education, meeting medical expenses, and making investments in agricultural produce businesses. Factors influencing trends in credit use Access and use of financial services among the rural poor (including smallholder pig farmers) continue to face unsupportive service providers in the rural sector. Transaction cost for credit in the traditional financial system is too high due to, among others, lots of paper work, long distance from the farms to the bank offices, and challenges related with the need to make several visits before loans are approved. Most traditional financial institutions hold back their service due to the fear of losing their investments in the rural sector, which is mainly agricultural by nature. For them,

95 Uganda smallholder pigs value chain development: Situation analysis and trends 85 uncertainty that comes with the business plays a key role in accessing their services. Policies and rules of engagement that can help ensure credit access amidst the negative effects of natural calamities, insurgencies, and price risk may help improve the level of credit access and use among smallholder farmers in Uganda. Policies influencing access and use of credit, by production system Uganda does not have a specific policy on access and use of credit for different production systems. Nevertheless, Uganda liberalized controls over bank interest rates in the early 1990s following the disastrous interest controls that were imposed in the 1980s. These reduced nominal interest rates in relation to the rate of inflation, thus shrinking the banking system. Reforms that lead to the liberalization of the financial sector were part of the adjustment programs that started in The Bank of Uganda Act and Financial Institutions Statute 1993 have also contributed to the strengthening of the financial sector and in domestic resource mobilization. The policy of liberalizing bank interest rates in Uganda allows banks to extend credit to customers who would not otherwise have access to bank loans (GOU 2012), thus increasing lending. According to GOU (2012), bank loans to the private sector in August 2001 amounted to UGX 815 billion in 2005/06 prices, but ten years later (in 2011) this had increased almost five times to UGX 3867 billion in 2005/06 prices. The government is also committed to strengthening key rural services including rural financial and marketing services. There are several rural development strategies such as the Rural Development Strategy, Prosperity for all, and the National Development Plan. All aim at enhancing overall agricultural and rural development agenda through the provision of credit and micro-finance services. Furthermore, the Plan for Modernization of Agriculture (PMA) was developed as a holistic action strategy to facilitate the expansion of the rural economy through increased agricultural productivity, value addition, and market access. In the same line, the Medium Term Competitiveness Strategy for the Private Sector (MTCS) was developed to target the areas of business environment and to facilitate the transformation of the private sector in terms of becoming competitive and functioning as an engine of economic growth. Since 2006, the government has been implementing new Rural Financial Services Strategy and promoting a network of healthy and extensive rural finance system in the country. The Savings and Credit Cooperatives (SACCOs) were adopted to drive increased access to financial services in rural communities. They are being used as instruments to achieve the fourth pillar of the Prosperity for All Program (PFA) in Uganda. The ultimate objective is to ensure that financial services reach the population in every subcounty. In this context, poor farm households are encouraged to mobilize savings and to use those savings deposits as a source of investment capital to rural enterprises in form of loans. The government is working to deepen and accelerate efforts to improve financial literacy among bank customers through the use of certain compulsory statements, warnings, or words of guidance (consumer protection guidelines). This is to help increasing awareness among consumers of financial services especially when it comes to all the information relating to the terms and conditions under which such services, including loans, are provided. There is need to accelerate and expand measures that reduce lending rates over the longer term, by addressing the fundamental factors that underpin commercial bank lending rates such as reducing banks operating costs through the provision of relevant infrastructure; reducing the risks to banks of lending by rolling out the Credit Reference Bureau and the National Identity Card; and ensuring that the commercial courts are facilitated to increase the time available to handle cases. It is also necessary to enhance the management and governance of MFIs that is vital in building trust and confidence in the sector. A performance Monitoring Tool is to be expanded to cover all formal microfinance operators, in order to improve the reporting, performance monitoring, information sharing, and control systems.

96 86 Uganda smallholder pigs value chain development: Situation analysis and trends The issue of motivating SACCO s, MFI s and banks to provide short-term loans to piggery and other livestock enterprises is vital. Currently, it is widely agreed that finance providers have low willingness to offer investment finance to the small and poor farmers probably due to the risk associated with farming enterprises. There is a debate on how to attract and increase credit facilities of financial institutions (such as the Agricultural Credit Facility (ACF) of Bank of Uganda) in order to boost long-term lending to the agricultural sector by increasing the resources available for lending to the agricultural sector. The issue of reducing the risk faced by the financial institutions in order to stimulate willingness to provide various packages of loans to small-scale farmers, by introducing and scaling-up credit guarantee schemes. Currently, there are some schemes of credit services that have been developed between financial institutions and some donors and NGO s like AGRA and Kilimo-Trust.

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98 88 Uganda smallholder pigs value chain development: Situation analysis and trends Value addition and marketing This section attempts to identify pre- and post-farm nodes in the pig value chain (VC). They include the input sourcing, farm production, collection, slaughtering, quality control, processing, market search, market exchanges, retail activities (consumption), and customer support. The analysis of VC highlights equity issues by examining horizontal (within each node) and vertical (between nodes) distributions of value additions. Value addition refers to a full range of activities and exchanges that are required to bring live pigs and pork products from a stage of conception through different phases of production up to the final consumer. This process normally involves a combination of physical transformation and use of various inputs and producer services (Kaplinsky and Morris 2002). Actors at each and every node of the value chain are able to add value to the pig products that is aimed at satisfying the final consumer. Value addition in the live pigs and pig meat products is largely limited in Uganda. About 98% of pigs are sold as live animals and are slaughtered for pork that is consumed with limited or no value addition (Mutetikka et al. 2009). In contrast, the potential for value addition on the pig meat products is considered to be vast in the country. Pork products include: fresh/fried/roasted pork, pork sausages, and minced pork that is often consumed by the affluent class of consumers. Other semi-processed pork products range from ready to roast pork chops, pork ribs, pork roast, pork shoulders, and many more. The lack of processing is not exclusive for the pig value chain, but applies to most agricultural commodities and products in Uganda, because less than 5% of all agricultural commodities are processed (GOU 2011). The level of productivity, processing, and upgrading of actors along the chain is still very low in terms of production technology that is used, access to market information, and linkages (organization and structure) between various stakeholders, especially those that provide a supportive service to pig producers and up-coming processors. Processing and marketing: pig value chain structure The value chain for live pigs and pork is very complex. Figure 21 shows different nodes, major actors, and their specific roles in the pig value chain in Uganda. If these actors are properly coordinated, they are bound to be efficient in ensuring adequate production and efficiency in the distribution of quality pork. There are also pig traders that engage in small-scale retail business (especially butchers). Most of the smallholder pig farmers produce their own piglets (Pig farmer Type 1), that are largely cross-breeds of exotic breeds (Mutetikka et al. 2009). Some of the piglets are kept on farms; others are sold to local traders; the latter or the same piglet producers sell those to the local growers and fatteners (Pig farmer Type 2), for fattening; and others to the government for distribution to selected farmers under the NAADS program as part of the bona bagagaware (prosperity for all) policy intervention. Some NGOs such as World Vision and CARITAS also have programs that buy piglets for distribution to farmers.

99 Uganda smallholder pigs value chain development: Situation analysis and trends 89 Figure 21. Pig value chain map in Uganda. Source: Adapted from: Farmers FGDs conducted by the Livestock Data Innovation Project in Wakiso and Mukono districts, September Current volumes handled, representative prices and market shares There is need for in-depth studies aimed at quantifying the volume of live pigs, pork products, and related inputs that are handled at each node of the value chain. This evidence can then be used to shed light on the magnitude of prices, margins, market shares, and gender disaggregated employment, all of which are not well understood. What is known is that farmers sell their pigs based on the visual weight estimates made by the trader because farmers do not have equipment to weigh animals. The price of pigs ranges from UGX /kg of live weight in districts near Kampala; in rural areas this can be low to about UGX 4500/kg live weight. Some farmers use a measuring tape to compute the pig weight, while the majority rely on visual estimation of pig weight. An adult pig weighs between kg, for improved or exotic breeds pig weight can even be up to kg. The price of one kg of pig meat after slaughter is UGX The average carcass weight of the pig is 60 kg. Pork butchers provide ready market to pig producers. Unless there is a disease outbreak, farm gate price of pigs tend to be stable throughout the year. Payment is by cash, and rarely are delays in honouring payments. The Quality/Fresh Cuts company dominates the market for packaged retail cuts and processed meat. The company offers a full range of meat products (both from beef and pork, small quantities of poultry meat), which includes prime cuts, plastic packed retail cuts, sausages (hot dogs, boiled sausages), ham, minced meat both frozen and fresh etc. The company covers around 85% of Kampala s processed meat market, and is estimated to have a daily output of 11 t of fresh meat (6 t of beef; 3 t of pork, 2 t of chicken). Furthermore, there are about 10 other relatively smaller competitors of Quality Cuts/Fresh cuts operations. The two main ones Sausage King and Your Choice have an estimated daily production of 300 to 500 kg of minced beef, beef sausages and pork sausages. The products are marketed through supermarkets in Kampala.

100 90 Uganda smallholder pigs value chain development: Situation analysis and trends Trends: Units, products, pigs produced, prices and margins Since 1980, the number of pigs has increased. Pig production is now widespread and increasing at a high rate. Most of the pigs are consumed in Kampala City, with greatest supply coming from the Central region, followed by Western region and Eastern region. The average price of live pigs and pork has increased over the years in response to the increase in demand due to human population growth, urbanization, and purchasing power that have all resulted in changes in tastes and preferences. All these have boosted the demand for pork, the profit margins for several actors of the value chain, except for poor pig farmers, and the employment of many people at different nodes of the pig value chains. Several factors have been influencing trends in the activity levels and exchanges in the pig values chains. These include an increase in the number of pigs; relative availability of improved (commercial) feeds; improvement in market infrastructure; availability of improved pig breeds and their crosses; and improvements in disease control programs and services. In spite of this, pig farming is still characterized by high piglet mortality, low productivity and high cost of production. All these challenges can be attributed to a combination of: (i) poor quality of feeds; (ii) exploitation by traders which affects the morale of pig farmers; (iii) presence of fake drugs in the market; (iv) lack of proper fed ingredients; (v) limited access to high quality animals; (vi) high prevalence of diseases especially ASF; (vii) absence of adequate housing facilities resulting in poor hygiene and management practices; (viii) pig losses due to attacks from wild animals; (ix) lack of trust and willingness to work together; and (x) lack of awareness on the best management practices in pig farming, as result of limited extension and technical advisory services. There are other key constraints that continue to affect pig farmers such as: (i) poor structure of pig industry reflected on: many traders participating at each and every stage of the supply chain; high transaction costs, lack of capital, lack of improved transport, and limited access to information which leave the majority of smallholder farmers out of higher end pig products markets. This justifies the need to enforce standards on the handling of live pigs and quality of pig products. (ii) Pig farmers are poorly organized, and are therefore unable to utilize the advantages of collective marketing and high bargaining power. This limits farmers efforts to upgrade into various pig related market exchanges at different knots of the value chain. (iii) Pig farmers also face many technical or management problems that limit productivity, while increasing the cost of production. This also limits their ability to keep improved breeds. A meaningful collaboration among policymakers, research organizations, universities, NGOs and the private sector can help in developing capacity of key actors in the value chain right from the production and distribution of inputs to the distribution and consumption of pork and pig meat products. There is need for specific interventions in breeding, feeding, disease control, disease detection, pig husbandry practices, dissemination of marketing information, access to credit information, strengthening capacity and management of abattoirs and engaging the food processors in an effort to have good quality pork products. Policies that influence composition of the sector The privatization policy, National Meat Policy (2003), National Policy for the Delivery of Veterinary Services (2001), and the Decentralization Policy (1993), are being implemented to improve production, investment, meat processing, supply and level of domestic and export marketing of meat products. In particular, piggery is not yet considered a priority enterprise for investment in all policy documents. The demand for pig products in the country is however very high. Nevertheless, improvement in the control of diseases, farm management, and the supply of water in rural areas among others has contributed to the survival and increase of pig numbers. Improvement in the value chain of live pigs and pig products is yet to be registered in areas of market efficiency and value addition. Various development strategies in Uganda, including the National Development Plan (NDP), Plan for Modernization of Agriculture all aim at increasing economic returns of smallholder livestock farmers. The focus is on value addition and improvements in quality, safety and quantity of pork and pork products, but those are not translated in action.

101 Uganda smallholder pigs value chain development: Situation analysis and trends 91 The government is collaborating with the private sector to increase investment in the meat industry. The focus is to increase meat productivity, production, value addition, and diversification into high value products, including pig farming and pig products, though this is still at a small-scale. The decentralization policy is helping many districts to take up piggery as one of the priority enterprise that are supported through NAADS and NGOs activities, with the aim of increasing production and consumption. However, more needs to be done, if farmers are to be able to market effectively their live pigs and pig products. There is also a need to conduct an in-depth study of pig value chain analysis. According to Kaplinsky and Morris (2002) and Faße et al. (2009), pig value chain analysis can help understand: (i) the mapping (defining boundaries) of pig value chains and the economic determinants of cost structures at each node; (ii) the organizational (principal functions, agents and products at each stage) strategies of small-holder pig production chain; (iii) the rate of dissemination and adoption of better pig related technologies; (iv) efficiency levels in terms of production costs vs. levels of profitability; (v) institutional (actors, institutions, and relationships) innovations that increase the bargaining power of farmers such as contract farming and collective marketing (economic activities, physical and monetary flows); (vi) value addition by increasing pork supply (quality of pork) and reducing wastages (losses); (vii) nature of constraints and environmental impacts in the pig value chain that limit exploitation of end markets, and; (viii) volume of pork produced, quality of pork products, price elasticity, and trends of pork consumption. In Uganda, only one study (Mutetikka et al. 2009) has attempted to characterize the local pig marketing. There is need for more qualitative and quantitative research of pig value chains in order to understand all the above mentioned issues. There is also a need to enhance sustainable productivity of small-scale pig systems in Uganda, by increasing their participation along the whole value chains for pork products. However, this requires an economic and policy environment that is conducive, and one that facilitates farmer access to vital inputs at affordable price. Key areas of interventions include improved technologies (genetics, feeds, feed crops/forages and animal health); market innovations; need to target impact of any intervention; continuous development of technology; better management of manure; and improvement in marketable pork products and by-products.

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103 Uganda smallholder pigs value chain development: Situation analysis and trends 93 Food safety This section presents highlights on key public health strategies that are relevant to the pig sector. The public is increasingly becoming sceptical about the quality of pork and other meat products in the country. Sub-standard pork easily finds its way on the Ugandan market, while several illegal slaughter places continue to operate without supervision. Consumer confidence is at stake, and this calls for the need to promote quality and safe pork in the country. Quality assurance standards in the pig production process are yet to be embraced. Nevertheless, pig meat which includes pork and pork products such as bacon, ham, and pork sausages are widely believed to be safe to eat, if they are well handled and cooked at temperature of about 70ºC (158ºF). Good pork preparation meaning proper cooking destroys most of the disease causing bacteria and infections. According to the Senior District Veterinary Officer, Kampala City Council (Emilian Ahimbisibwe), daily consumption of pigs (pigs slaughtered/day) in Kampala is between 300 and 500, but the total number of slaughter slabs/places is unknown. Only five illegal pig slaughter places are known to operate in the city. Wambizzi is the only pig abattoir that is considered to be legal and able to meet minimum standards. The abattoir is owned by the Wambizzi Cooperative Society Ltd and is involved in pig rearing, pig slaughter, processing and distribution of pork and by-products. It is widely agreed that hygiene of pork abattoirs and pork joints in Kampala is still poor. To a large extent, this is attributed to poorly designed and constructed slaughter places, with lack of adequate space, poor handling of animals, contamination from unhygienic environment, inadequate disinfection of equipment and chopping stamps. Besides, the display of pork in some butcher shops leads to excessive pork contamination due to exposure to dust, excessive heat, rain, flies, vermin, unauthorized people, and other contaminants. The transport of live pigs has improved some; however, there are some traders who still use inappropriate vehicles and cages. Noteworthy is that inflicting unnecessary pain and suffering to live animals, including pigs, is illegal in Uganda. It violates the Animal (Prevention of Cruelty) Law of It is therefore a requirement that all loading and off-loading facilities be equipped with ramps of minimum slope to ensure ease and safety of loading. Very often pork and pig carcases are transported in open pick-ups, in sacks placed on bicycles, motorcycles, and in boots of cars, all of which are prohibited by law. The negative effects of the failure to observe the recommended carrying capacity of vehicles and the proper loading and off-loading facilities are well known. This can stress the pigs and leads to poor quality pork after slaughter. However, Kampala City Council (KCC) and other local governments are committed to the improvement of the better pork quality and taste. A performance review of abattoirs, butcheries, and the transport of live and slaughtered animals is underway, and this is expected to improve the situation in years to come. Consumers would then be able to demand pork of their choice. All pork is supposed to bear an official stamp confirming that it is from approved slaughter places.

104 94 Uganda smallholder pigs value chain development: Situation analysis and trends Structure of the public health sector relevant to pork products The Directorate of Animal Resources in MAAIF has three departments: (i) Department of Production and Marketing, (ii) Department of Livestock Health and Entomology, and (iii) Department of Fisheries Resources as indicated in Figure A11. Stakeholders that are mandated to ensure good quality pork include pig farmers, traders in live pigs, traders in feeds, veterinary personnel, public health personnel, and operators of butcheries, pork/meat transporters. They have the interest and power to influence the level of slaughter house hygiene and pork hygiene. In terms of operation, the veterinary and public health officials in local governments work together to improve the quality of pork and meat. In the case of KCC, the two departments (Veterinary and Public Health) have one head, and work together to improve food safety in the city. There are plans to relocate existing abattoirs and slaughter houses to suitable locations, preferably outside central Kampala and wetland areas. Currently, the focus is more on regulating the informal slaughter places, in order to support the operation of the new upcoming modern abattoirs. Major pork safety problems Meat inspectors often deal with problems of zoonoses such as TB, anthrax and various pig diseases. The other major problem is contamination. The meat inspection code (based on the MAAIF and FAO manual) is employed to detect these meat safety problems. However, the lack of authority to punish culprits is pointed out as leading cause of demoralization among meat inspectors. Pork safety problems in Uganda include the tape worms, whose prevalence is estimated to be between 1 3%, depending on location. Tape worms are more prevalent in areas with poor handling of sewage and absence of latrines. According to the senior DVO Kampala City Council, contamination of slaughter houses and pork in Kampala is highly prevalent. Slaughter places operate under poor standards, while most butcher shops are not free from dust and flies. Moreover, pig carcases are often transported in sacks that may also contribute to pork contamination. The lack of refrigeration facilities in slaughter houses, trucks that transport carcasses, and in the butcheries creates further challenges in case pork is not sold quickly in the same day. These challenges are further exacerbated by lack of clean water in slaughter places. Nevertheless, there has been an improvement in the level of inspection, and this has helped to reduce the level of mortality. There is wide agreement among veterinary and medical doctors that the increasing incidence of neurological diseases such as epilepsy, madness, and blindness in Uganda may be caused by eating poorly cooked pork, especially from pigs that are reared in unhygienic conditions. Most pigs in Uganda are kept and managed under poor housing and practices, which leads to pig infection with a parasite called Taeniasolium that causes neurological diseases (cystercercosis) in humans (Waiswa et al. 2009). However, there is need for evidence on the extent this may be a problem in the country. More research and surveillance activities are needed to provide the much needed information on the issue. Trends: morbidity, mortality, indicators of control efforts There is limited information on the level of incidence, prevalence, morbidity, mortality rates, and qualitative characterization of corresponding impacts of major causes of food safety problems in the Ugandan pig sector. Few studies that have been done are of limited scope. There is a need to conduct detailed studies on key issues of pig production, pig health, food safety, marketing, and value addition.

105 Uganda smallholder pigs value chain development: Situation analysis and trends 95 Factors that have been influencing control practices There is more focus on regulation of slaughter places in urban areas than is the case of providing incentives to promote capacity in urban pig production. Currently, the regulation of the abattoir health and pork hygiene is conducted based on the Uganda s Public Health Act 13 (Public Act) and Kampala Ordinance rules (GOU 1962; GOU 2003; GOU 2006). Ordinance rules provide guidelines on how to ensure good quality pork and pork products. They define conditions upon which slaughterhouses and butcher s shops can acquire licence and be effectively regulated. Some of the regulations require that pigs can only be slaughtered in licensed slaughter houses; all pigs and pig carcases have to be inspected by authorized veterinary health or medical officer before they are released for public consumption; there is need to mark or stamp all pork considered fit for human consumption after thorough examination; and to register and supervise all persons involved in the handling, transport, and sale of pork to avoid unwanted exposure to contamination. Nevertheless, the situation is so dire that even the only pig abattoir (Wambizzi abattoir) in Kampala does not qualify to operate, if the public ACT is to be fully evoked. The City Councils and municipal councils have District Veterinary Officers (DVOs) who conduct livestock and pork/meat inspection. They rely on these ordinances to crack down or close slaughter places that are deemed illegal. Arrests are normally made whenever it is ascertained that slaughter facilities are operating under very poor hygiene. For example, the DVO Kampala City Council revealed that the Port Bell slaughter house (located in Luzira area, near the lake, opposite to Nile Breweries) was recently instructed to stop its operations due to the inability to satisfy the required minimum standards. Certainly, results would be different if the government was to combine this regulation with other win win interventions that create capacity in such operation. Providing the necessary incentives to proprietors of slaughter places that operate under bad state as opposed to closing may help improve the informal slaughter services in this country. Wambizzi abattoir, like most traditional slaughter places in Uganda, has a weak management system, when compared to the new slaughter companies such as the Uganda Meat Industries. Decisions need to be made on shifting most slaughter places to suitable places that can allow minimum contamination of pork. Furthermore, Wambizzi operations need to be modernized in a way that can limit the negative influence and exploitation of traders that currently control the supply chain. This implies that slaughter companies should be able to recruit and pay its workers and to ensure that the existing quality controls and procedures are followed. Currently, workers in slaughter places are hired and paid by traders of live animals, a factor that makes traders so powerful to the extent of disrespecting essential quality controls. Most slaughter companies operate under tight budgets, but this is not considered to be the major cause of poor quality meat and pork in Uganda. The problem appears to be more cantered in the lack of empowerment and support from existing government policy. For example, disagreements and power struggles between officials in the Directorate of Animal Resources (MAAIF) and officials in the Local Governments tend to lead to vetoing of lower level decisions. This not only leads to demoralization but also undermines the level of regulation and improvement in pork/meat safety. It is essential therefore that the right support be provided in time and at all levels of regulation structure in order to ensure improvement in pork quality. Meat inspectors and regulators in local government claim not have the support of police and courts of law. For example, veterinary officials in KCC are now hesitant to take on powerful unregistered and illegal slaughterhouses on issues of poor hygiene performance. Such cases tend to be suspended in courts of law, and are blamed on the contradictory influence and vetoes from superior instances. This was the case when KCCA took the owner of a then not-registered Nsoba slaughter house in Kalerwe to court. 13. In case of Kampala City, the Public Health (Meat) Rules (GOU 1962), ceased to apply in They were instead replace with the Local Government (Kampala City Council) (Meat) Ordinance, It is this Ordinance that is currently being used to regulate the operation of traders in live animals, slaughter houses, pork/meat transporters, butcheries and ready to eat pork joints.

106 96 Uganda smallholder pigs value chain development: Situation analysis and trends The level of awareness among pig producers and traders on issues of pork safety is still low and therefore a big concern for pork consumers. This is attributed to poor enforcement of rules and standards, even when relevant policies are clear. There is also lack of inspectors to conduct ante-mortem, visual inspection of meat organs and lymph nodes, and further testing of pork in the laboratories. Clearly, experts in meat inspection are overstretched, and yet capacity building is also still low. Policies influencing access and use of control practices MAAIF is mandated to enforce the Veterinary Legislation including meat hygiene and safety that is essential for the country to produce quality meat. Among others, MAAIF: (i) formulates and reviews national policies, legislation, standards, plans and programs related to the livestock sector; (ii) regulates livestock marketing and fisheries activities; (iii) promotes the sustainable use of natural resources; and (iv) coordinates and monitors private sector service providers in veterinary services, agricultural extension, national development programs, regulatory services, disease control, and water use in agricultural production. According to GOU (2007), some of the policy interventions that are being implemented include allowing the private participation of district veterinary officers (privatization policy), streamlining disease control and regulatory services that ensure food safety and general hygiene especially in slaughter houses; control and reduction of tsetse fly infestation; operationalization of water for agricultural production (WFAP); and genetic multiplication in plant, livestock and fish. Government policies on livestock emphasize the importance of disease control and quick response to outbreaks of diseases. Here, the aim is to produce good quality pork and meat products that can meet international standards and boost exports of animal origin. There are strategies to improve the delivery of veterinary services at affordable costs in the whole country. A parallel system is in place and constitutes the traditional veterinary extension services and extension services provided by NAADS. The two systems work together with private sector and NGOs to satisfy local demand of various services to be rendered to farmers. However, all government policies on livestock sector and food safety are generalized. They do not address specific issues of different livestock enterprises, meat products, and production/or marketing systems. For example, the National Meat Policy has been in operation since 2003, and recognizes the importance of increased livestock population in supporting the meat industry and improving the level of income for the majority of rural and peri-urban households in Uganda. Clearly, the issue of pigs and pork are not clearly stated in this policy. The National Meat Policy aims at providing an environment that is conducive to attract investment in the industry and to build capacity for the country to supply meat and meat products to the domestic and export markets (GOU 2003). The policy has provisions that aim at promotion: (i) sustainable production of quality meat; (ii) improvement in meat processing, value addition and enforcement of standards in the meat industry; and (iii) marketing of meat and meat products in both internal and external markets (GOU 2003).Various provisions of the meat policy stipulate how the government can increase commercial production of increased number of livestock animals, including pigs. Government also provides support services to create an enabling environment for the private sector to invest in the meat industry. The National Meat Policy therefore has provisions that are spearheading direct private sector (livestock producers, traders, and meat processors) investment in livestock production, processing and marketing of meat and meat products. The focus is to increase sustainable meat production, optimal utilization of resources and improvement in welfare. Noteworthy is that the National Meat Policy employs different strategies that are vital. These are helping to build capacity for increased supply of quality meat; develop infrastructure for improved delivery of services; clearly define conditions that are necessary for good animal welfare and quality assurance; ensure economic use of feed resources; provide adequate water; improve breeds; and provide support services in areas of disease control, sensitize stakeholders (producers, traders and processors), establish meat processing facilities, set up a marketing information system, encourage formation of marketing association, set standards of meat products, and enforce regulations. There are other policies and laws that govern the processing and sale of meat products and all food intended for human consumption. These include the Food and Drugs Act; the Public Health Act; Uganda National Bureau of

107 Uganda smallholder pigs value chain development: Situation analysis and trends 97 Standards (UNBS) Act and the Weight and Measures Act. These laws aim at ensuring that pork and other meat products are processed and sold in a way that ensures good quality and safety to human consumption. Like in most urban places in the country, Kampala City Council has started promoting pig enterprise through NAADS program. However, there concerns that poor effluent disposal may limit pig farming in urban areas due to pressure on land, and emission of greenhouse gases (i.e. methane and nitrous oxide) that have an effect on global warming. The Senior DVO of KCC indicated that Plans are under way to promote organic pig farming in Kampala, but this has to be in a distance of about 20 km from the city centre. Currently, the government is supporting pig farming in urban areas through the program of NAADS. For instance, in 2011, NAADS gave out 200 piglets to 20 farmers in Kampala. NAADS also supplied 2 cows, 20,000 chicks, and 70 goats to farm households in Kampala. It is clear how these farm households are expected to pay for this support on improved inputs. Current policy issues regarding pork public health The major issue is on how to enforce the National Meat Policy (2003) that aims at improving and building capacity for increased supply of good quality meat and meat products, promoting stable and competitive trade in meat industry, and placing conducive fiscal and legal environment for growth of the industry. There is debate on how to effectively bring about sustainable production of meat and meat products, meat processing, value addition, and marketing. However, the policy is silent on issues of piggery and pork products. The question of pork/or meat hygiene that can satisfy the interests of consumers is high on policy debate. Currently, there are problems of cysticercosis, unhygienic processing, lack of inspection, and widespread illegal activities in the handling of live pigs and pig meat. There are calls to expand meat inspection services from the narrow emphasis of ante-mortem inspection of live animals and post-mortem examination of their carcasses, to also include inspection from the point of production, through handling, storage, and quality control of meat products and by-products (GOU 2003). This will help reduce pork related health hazards that often result from pig diseases, use of expired chemicals, veterinary drug residues, and undesired effects of physical and biological contaminations created by unhygienic slaughtering and handling practices. The other issue is the promotion of public awareness on matters of better quality and demand for pork and pork products for better nutrition. The government is committed to improving meat quality and meat safety in the country. Currently, there are practical guidelines established by the 2005 Meat Quality Improvement Strategy to promote the supply of good quality pork and pork products. The guidelines emphasize the importance of establishing basic slaughter and meat handling facilities that can support further improvements and investments by the private sector. The question therefore is on how to achieve a nation-wide outlook of the meat/pork hygiene improvement campaign. There is need to equipping various actors in the pig value chains with appropriate advice on how to improve the quality and safety of pork. The other issue is on how to promote piggery as a very important enterprise in reduction of poverty and improvement in nutrition status. Here, the debate is much more on the need to support and improve the capacity of farmers to produce pigs under hygienic conditions for pork that can generate higher financial benefits and social benefits.

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109 Uganda smallholder pigs value chain development: Situation analysis and trends 99 Competitiveness of the pig sector The competitiveness of the overall pig sector and the main pig value chains is very high. This is true, even when piggery is not included among priority enterprises for commercial development and investment. Piggery in Uganda is increasingly becoming recognized as an enterprise with great potential, given the increase in production and consumption of pork. This potential is driven by a combination of population growth, rising incomes, changing preferences, urbanization, and changing production systems. Demand and popularity for processed pork products, pork roast in pork joints, street pork (informal street food), and high quality food in the formal sector are both growing. The formal sector includes supermarkets, Fresh Cuts, Quality Cuts, and My-Choice. Pig keeping among smallholders, especially women in the country is growing. Evidence of this is the increase in the number of pigs and proportion of households involved in pig keeping. This is true whether farm households are very poor or relatively better-off. Besides, there are more agents along the pig value chains. These are involved in such activities as: input trade, trade in live pigs, trade in piglets, pork processing, and pork transport. Interventions that can contribute towards adding value on pig products can therefore increase income and boost employment for many people in the country. The proportion of female-headed households in the livestock sector that also engage in smallholder pig production has increased in the last 2 decades, from about 10% in 1990, to 15% in 2000, and to 32% in 2009/10. Despite poor access to markets and related exploitation from traders that act as middlemen, smallholder systems are relatively more competitive than modern piggeries. This is attributed to use of commercial mixed feeds that increase productivity in peri-urban areas, and use of crop residues and forages in rural areas that reduce the cost of production. Piggery is therefore a useful instrument of poverty reduction and gender mainstreaming. Pork is a source of good quality protein like any other animal source foods. There are concerns about its fat contents that may put it among non-healthy foods. Contrary to widespread popular beliefs that pork as white meat provides great nutrition value for many people who want to eat health food, this is not yet scientifically supported. There is need for evidence to ascertain the extent to which white pig meat can provide a more health food. Comparative and competitive advantage vis-à-vis the world market The pig sector in Uganda still faces major challenges that continue to constrain its competitiveness including shortage of skilled manpower in areas for adding value; weak legal and regulatory framework which is compounded by poor level of enforcement of food safety requirements; and the extremely limited access to financial services for most Ugandans, particularly smallholder pig farmers and medium sized business enterprises (Agriterra-EKN 2012). Ultimately, all these reduce the country s competitive advantage when compared to the rest of the world. Uganda has comparative advantages in the production of pigs and consumption of pork; however, this is only serving the domestic demand, and to some extent regional demand.

110 100 Uganda smallholder pigs value chain development: Situation analysis and trends The level of pig/pork exports is very low and there is need for detailed studies that can quantify the extent to which there are significant relationships between domestic prices, import prices, and structures of import (and export) taxes. When it comes to the export and import of live pigs and pork products, little is known about estimates of border prices, and domestic resource costs. In the case of disease outbreaks, the resulting sanctions on the consumption of pork can also reduce the competitiveness of the pig sector in the country. Current structure of prices and margins across the main value chains The structure of prices and margins across the main pig value chains is not well understood. The main value chains include: (i) rural to rural value chains, (ii) rural to urban value chains, and (iii) urban/peri-urban to urban value chains. Research is needed to understand the performance of the pig value chains in terms of who among the value chain actors is benefiting more; who is constrained; and which stage contributes the highest share of value added. This can be assessed by undertaking a financial analysis from the perspective of individuals that also highlights their financial costs and benefits based on market price. Conversely, an economic analysis can be conducted from the perspective of the society based on shadow prices and opportunity costs. Conclusions regarding likely growth scenarios The pig subsector is vulnerable to outbreaks of new infections and diseases, which tend to reduce the number of pigs and productivity, as well as the quality of pork and pig meat products. Efforts to boost growth of the pig sector should focus on different stages of the value chain. At farm level practices for increasing production and productivity, improvement in transport and marketing conditions for live pigs and pork, ensuring good quality pork products, as well as hygienic processing and packaging for distribution in the local and regional markets, among other conditions. This however requires effective interventions that can eliminate negative effects that are related to: Lack of capital on farms and limited access to information/training on pig husbandry. Poor farm management practices especially in areas of animal feeding and animal health. Pig diseases such as helminthiasis, scabies, mange, coughing and, diarrhoea that affect productivity and eventually may result in high mortality specially in piglets. Outbreaks of African swine fever. Expensive veterinary services. Availability of fake drugs and animal feeds on the market. Limited access to good pig breeds that are productive in different production systems. Poor structure of pig industry in which there is dominance of traders in the supply chain. Farmers are poorly organized, unable to take advantage of collective marketing to upgrade. There is low farm productivity as a result of existing technical and management problems. The transport and marketing infrastructure is poor which increases transaction costs. There is limited value addition on pork and pig meat products. Pig production is not among priority enterprises in the Agricultural Sector Development Strategy and Investment Plan (DSIP) for Uganda. Pork safety problems associated to zoonoses (e.g. tape worms, TB, and anthrax) and contamination.

111 Uganda smallholder pigs value chain development: Situation analysis and trends 101 The country is therefore likely to enjoy high growth in pig production, if there is more focus on improved access to affordable credit, training, extension services, veterinary services, improved infrastructure and improved pig breeds. The recent routine interventions in the control of animal diseases are contributing to the improvement of pig production systems in areas where the service is available. The private input and veterinary services providers though growing at a very slow pace compared to the demands for such services, is under pressure from smallholders to provide reliable veterinary services, including quality animal feeds. There is increased awareness and public demand for addressing hygiene and contamination of pork at different levels of the value chains. This will boost improvements in pig abattoirs, quality of pork and competitiveness of the pig sector. The market of live pigs, pork and pork products is segmented and needs to be improved to reward quality and supply to the poor. Meat inspectors require support to overcome demoralization due to lack of authority to punish culprits of illegal and unhygienic pig slaughter. More needs to be done to enforce existing regulations. Evidence from the 2009/10 UBOS data reveals that the number of pigs reared appears to be more pronounced among the richest 25% and poorest 25% of households. This shows that improvement in piggery enterprise has the potential to improve the welfare of a wide spectrum of smallholders in the country. Pig production is becoming an enterprise for both the rich and the poor, including the vulnerable groups. In the coming years, the country is likely to see more large-scale investments in pig production. However, the number of smallholder pig producers in the rural and peri-urban areas will continue to increase. Growth in domestic and regional demand for pork is likely to remain higher than growth in local production of pigs. The business as usual scenario of pig production will not satisfy the local demand for pork and pork products in the coming years, unless measures are taken to promote improvements in the pig value chains, particularly for the smallholder pig producers.

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113 Uganda smallholder pigs value chain development: Situation analysis and trends 103 Value chain governance Governance of value chains ensures that interactions between actors along a value chain exhibit some reflection of organization rather than being simply at random. This is achieved when there are well specified parameters requiring, in this case pork products, pork processing, and logistic qualification along the value chain, and also encompassing bundles of activities, actors, roles, and functions (Kaplinsky and Morris 2002). Ultimately, governance of the value chain to some degree leads to effective value chains. It is evident that any good innovation through value addition creates a new pork product that may provide greater returns (super profits) from the price of that pork product than is required to meet the cost of the innovation. This in turn triggers an inducement for other pig farmers and actors to replicate and seek to acquire part of the profit in the local market. Stimulating production and income generation for the poor therefore is largely driven by opportunities to add value to pork products. These opportunities are typically set within complex webs of actors and activities which require a range of technical and institutional strategies, including governance. Given that the key features of value chains include the need to understand trust, cooperation, governance, market power, innovation, knowledge, and intervention points (Webber and Labaste 2010), there is need for a detailed study on smallholder pig value chains in Uganda. Also important is the need to map value chains; the relative importance of different stages or segments of different activities and interactions that generate costs and value; characterize the embedded socio cultural context, and the dynamics of gender in the pig value chain in the country. Synthesis of structure in main smallholder pig value chains The main smallholder pig value chains in Uganda have not yet been studied to provide evidence on the degree of coordination and the corresponding transactions between different nodes. There is need for more research in order to describe the main pig value chains and related market characteristics. These may include the simple market structure, market conduct, market performance, indicators of market concentration, competition within the sector, and main value chains. Currently, pork and pork products are sold and bought from various market places that include abattoirs; roadside outlets; roadside butcheries; small retail shops; wet markets; supermarkets, and ready to eat outlets. Everyone is free to participate in the market of live pigs and pork. However, there are barriers and catalysts of market entry, and the need to comply with standards though to a limited extent. All these factors may help actors with scarce attributes of entrepreneurship to protect themselves from competition, while extraction profit (entrepreneurial surplus). Barriers of entry normally includes initial qualifications of farmers, product quality, quantity specifications, ability to provide frequent supply at the levels demanded, production costs, transaction costs (distance to the purchase and sales markets, access to inputs and credit). It is also widely believed that market integration is not strong, given that the price of pork varies from place to place, depending on whether is in the main urban places or rural setting.

114 104 Uganda smallholder pigs value chain development: Situation analysis and trends Existing policies that influence governance and openness to upgrading The phenomenon of improving value addition and corresponding commodity value chains in Uganda is relatively new. There is no specific policy and strategies to harmonize the way actors in smallholder pig value chains are governed. The lack of organization of farmers, traders, processors, and other actors in the value chain creates inefficiencies that opens door for exploitation and poor quality products. There is need for a good policy if actors and particularly pig farmers are to upgrade along the value chain.

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116 106 Uganda smallholder pigs value chain development: Situation analysis and trends Externalities This section discusses the current perspectives and knowledge about issues that may be associated with growth of the pig sector, and smallholder pig production in particular. Pig farmers and the other stakeholders would like to have a sustainable production and productivity of pork products to respond to the demand. This implies that for the country to enjoy positive outcome of sustainable growth in pig enterprise, there has to be consistent supply and use of reliable and high quality inputs and pork products. Environmental issues must therefore be integrated, if the production and supply of pigs is to be adequate and sustainable. No doubt, the recent increase in the domestic and regional demand for pork and pork products has been accelerated by an increase in human population growth, urbanization, purchasing power and change in tastes and preferences. Despite this high demand for pork, farm level productivity of pork is still low. And while there is potential for increasing production and productivity of smallholder pig farms through the adoption of improved practices, vital resources in terms of feeds, forages, and water are increasingly getting threatened by climate change. Environmental impacts Smallholder pig value chains are embedded in the environment which provides a basis of all essential inputs, energy and the capacity to dispose emissions and waste. Economic activities and particularly agricultural production are all based on environmental resources, including land, forages and water resources. In Uganda, the National Environment Policy is clear on issues concerning the sustainable social and economic development through innovations that maintain environmental quality and resource productivity on the long term. The aim is to enhance basic aspirations of social progress of value chain actors, growth in economic performance, and ecological integrity. Interventions are needed to boost farm level productivity of pigs and household or individual level consumption of pork. Only technologies that reduce greenhouse gas emissions, pollution of water sources, and climate change need to be disseminated and targeted to the poor farm households. An increase in pork production can change the balance of required animal sourced foods in the country and can also trigger a reduction in potential negative environmental impacts. There is need therefore for carbon neutral pig value chains, the eco-footprint of pork, and pork products, and the sustainable use of natural resources (Faße et al. 2009). In this regard, a detailed pig value chain analysis can provide information on input output flows of pork products at each stage and the associated environmental effects of products, which are currently not well understood. Waste management Pig farming like other animal enterprises, generates waste that includes waste feed, water, faeces and urine. These need to be well managed, if waste emissions to the environment are to be minimized. Ultimately, waste management or effluent disposal helps to reduce nuisance from bad odours and flies; reduce pollution of water resources; prevent multiplication of disease causing agents in areas surrounding pig farms; and keep the environment clean. This is

117 Uganda smallholder pigs value chain development: Situation analysis and trends 107 important whether pig farms are located in urban, peri-urban or in rural setting. Tape worms are also more prevalent in areas with poor handling of sewage and where latrines are not available or poorly used (Waiswa et al. 2007). Tape worms constitute a serious zoonosis that eventually could cause epilepsy in humans. The lack of adequate labour and technology to handle and dispose pig waste at farm level is widely reported as a problem. Farmers who have provisions to collect pig manure often apply it directly to the garden, empty the waste in a pit on daily basis and some utilize the pig waste for biogas production. Feed competition and impacts on ecosystem health During the rainy season, pig farmers rely more on the green forages, farm level crop residues and other feedstuffs. These however become scarce in the dry season. The lack of adequate feedstuffs compels pig farmers to buy commercial feeds on the local market. There is serious complaint that most of commercial feeds are not only adulterated but also very expensive for smallholder pig farmers. All these dynamics have ushered in competition between farm level produced feedstuffs and commercial feeds. There is competition between the informal small-scale feed producers and the formal large-scale feed producers as well. Noteworthy is that pig waste can be an important source of nutrients for crop production, but can also have negative impacts on the ecosystem health. It is known that good management practices could help minimize wastage of compound feed through spillage and contamination. The e use of appropriate amounts of water, well designed creep area and feeding troughs could help to reduce feed wastage (Mutetikka 2009). Furthermore, feeding pigs the right amount of easily digestible feed, two times a day, is also a way of reducing feed wastages. However, in the case of fibrous feeds animals, usually chew them and leave some sort of bagasse by-product that needs to be cleaned from the corrals. All these wastages can be controlled when animals are raised in well-designed corrals, either cemented or elevated pens; however, most pigs in smallholder farms are raised on either ground floor, and even more frequently tethered or even roaming around, where the collection of feed wastages and manure is such a big challenge. Impacts on climate change: GHG emissions The emission of greenhouse gases (GHG) in the pig related enterprises is not well understood in Uganda. A study is urgently needed to quantify and compare variations in climate change across different livestock enterprises, including piggery. The National Environment Policy, the National Land Use Policy, and National Adaptation Plan of Action 2007, though are each silent on specific issues of pig enterprise, are being implemented to ensure sustainable social and economic development that can enhance environmental quality and resource productivity in the long term. The aim is to promote green (organic) pork and other meat value chains and to recognize differences in Uganda s agro-ecological endowments and potential. Furthermore, there are efforts to improve efficiency through optimal use of improved breeds usually crossbred animals that can easily adapt to the local conditions; affordable feedstuffs, and appropriate management to prevent damage of natural resources. This will help to meet the needs of the present generation without compromising the ability of future generations to meet their own needs. Public health concerns: nutritional impacts and food safety There are several public health concerns in Uganda when it comes to the nutritional and food safety issues about pork and pork products. Awareness among pig producers, traders and consumers on matters of better quality pork and pork safety for better nutrition is still low. Yet, almost all slaughter places continue operating illegally, without veterinary inspection and adequate supervision. This trend is compromising consumers confidence, pork quality and safety, as well as competitiveness of pork production in the country.

118 108 Uganda smallholder pigs value chain development: Situation analysis and trends Public offices responsible for regulations in the public health and food safety have not yet fully embraced quality assurance standards in the pig production process. Consequently, there are concerns of poor hygiene in abattoirs, butcheries and pork joints. Pork contamination due to exposure to dust, excessive heat, rain, flies, vermin, contact with unauthorized people, and other contaminants is also a big public concern. Lack of effective meat inspection and widespread illegal activities in the slaughter and handling of live pigs and pig meat is a public concern on issues of disease diagnosis and early detection. There are problems of zoonoses such as TB, anthrax, cysticercosis among other pig diseases, as well as lack of hygiene in processing, which need effective surveillance. Neurological diseases such as epilepsy, madness, and blindness are on the increase in Uganda. There is need for scientific evidence as to whether these human diseases are associated in any way with the eating of poorly cooked pork, especially from pigs that are reared in unhygienic conditions. The issue of pollution due to poor effluent disposal is also a big public concern, especially in urban and peri-urban areas.

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120 110 Uganda smallholder pigs value chain development: Situation analysis and trends Pig development strategies and activities There are not well-defined development strategies and activities for pig development in Uganda. Only NAADS activities have a component of distributing piglets and providing training and advisory services to farmers in selected districts. Few districts chose piggery as one of the main three enterprises to be promoted under NAADS program in the country. There are also other NGOs, such as Volunteer Efforts for Development Concerns (VEDCO), which are involved in supporting pig producers with the necessary inputs and training. The current policy environment does not favour the development of pig enterprises and related value chains, at least at the same level it does for dairy. The pig enterprise development is also not yet fully aligned in the national development plans and strategies for poverty reduction. This is evident from all policy documents that are silent on pig farming, and from the fact that pigs are not among the major enterprises selected for strategic investment and promotion in the country. Nevertheless, pig production has continued to grow on its own, and has now started to attract the attention of policymakers and other stakeholders to include it as an instrument of poverty reduction and economic growth. Synthesis from review of pig development activities The pig sector has for long time been ignored in almost all development interventions in the livestock sector. Documentation on the specific pig related projects in the past and present period is very limited. Only two past projects appear to have attempted to target pig enterprises, and these include: (i) the Livestock Disease Control Project that aimed at reinforcing animal disease control capacity and animal health-care delivery in conjunction with private sector participation, and the Meat Master Plan Study (1998), which focused on the development of cattle, sheep and goats, pigs, poultry and rabbits within the traditional smallholder and modern commercial sectors with emphasis placed on their economic potential (Kasirye and Denormandie 2012). The project helped to produce an overall, strategic and comprehensive plan that defined the perspectives for sustainable development of the meat industry and local demand and for export over a period of twenty years. New pig projects in the country will help farmers, traders, and actors in the value chain to utilize the potential of pig farming in the country.

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122 112 Uganda smallholder pigs value chain development: Situation analysis and trends Opportunities for pro-poor pig value chain development Table 32. Major strengths, weaknesses, constraints (SWOT Analysis) of pork value chains Strengths Existing domestic demand and market for pork across all regions of the country. Potential demand for pig meat in neighbouring countries such as South Sudan. Requires relatively low capital investment (low financial capital, small land holdings, cheap labour; mainly family labour) Compatibility with other crop farming enterprises (mixed crop livestock systems) For many smallholder farms the pig enterprise could become the main source of income Commercial large-scale pig farms on the increase in urban and peri-urban areas Piglets of reasonable genetic potential (cross-breeds) available in the market Low management costs, particularly in smallholder pig farms using family labour A wide range of professionals available to facilitate the value-chain (public and private service providers including; breeders, animal nutritionists, veterinarians, traders, processors etc.) There are some upcoming exportquality processors in the country Protocols on the establishment of Common Markets (e.g. EAC Common market; COMESA) Relatively high reproductive turn-over compared to other types of livestock due to the large litter size and high offtake under good management Weaknesses/Challenges Dominance of subsistence, smallholder pig production systems, with extensive management Low productivity in prevalent systems due to limitations in genetic potential, feeding and animal health problems Lack of government and private breeding programs aimed to improve the genetic potential of pigs results show that almost all pigs in Uganda are a mixture of crossbreeds, with very few pure breeds. Massive inbreeding due to small pig numbers in each farm, poor access to genetic material and limited knowledge on genetic improvement among farmers and poor technologies Dominance of poor farm management practices resulting in low productivity Low public awareness on pork safety and quality issues Lack of pig keeping specifications and diagnostic tools to guide commercial pig farming (e.g. diet, housing, animal health, breeding, marketing) Limited coverage of extension services Lack of recording system which has undermined decision-making based on economic performance Fake drugs and adulterated commercial feeds in the local market Inadequate feeding and nutrition due to lack of knowledge on the quality of local feed resources for pigs, amidst the very low utilization of supplementary feeding Poor quality of pig pens or housing in many farms, resulting in the exposure of animals to extreme heat, and inadequate management of excreta Poor public infrastructure, utility supply and market access for pig production in rural areas Lack of organized farmer groups (e.g. cooperatives) to explore opportunities to upgrade and cost share in areas of extension services; purchase of inputs; marketing; and collective guarantee to access loans. Poor coverage of financial services, and absence of specific lines for promoting pig production National policies and public private strategic investments are biased towards livestock enterprises of cattle, goats, and chicken Limited coverage of public veterinary systems, and high costs limit access to private veterinary services Weak linkages between stakeholders (farmers vis-à-vis traders; public vets vis-à-vis private vets; pig breeders vis-à-vis input dealers etc.) On-farm thefts due to lack of appropriate infrastructure Unhygienic slaughter houses and poor quality of pork Lack of sufficient veterinary services and vaccines for major diseases like African Swine Fever

123 Uganda smallholder pigs value chain development: Situation analysis and trends 113 Opportunities Favourable climate conditions results on the availability of a wide range of green forages and feedstuffs for pigs along the year Local demand to increase the national pork per capita consumption Pork is a preferred meat for the majority of the Ugandan population, except for the Muslim community Threats Natural disasters (notably floods, drought and mudslides) Emerging, re-emerging and endemic pig diseases (African Swine Fever) Limited access to micro-financing and credit markets High financial interest rates which accrues in reduced profit margin or even failure to break-even. Inadequate public investments in the livestock sector, especially pigs High demand for pork in the region (Uganda, Rwanda, South-Sudan, Kenya, DRC) Fast growing regional (EAC) and local consumer market through growth of population, urbanization, and per capita income Establishment of Common Markets (e.g. EAC Common market, COMESA) Potential for Increased carcass weight and productivity through modern production techniques (feeding, breeding and animal health management systems) Government commitment to increase investment in agroprocessing and marketing of non-traditional export commodities Government commitment to increase investment of capital for the rural communities through private sector led credit and savings schemes Improvements in animal health regulation, surveillance and research Favourable foreign investment and macro-economic policy

124 114 Uganda smallholder pigs value chain development: Situation analysis and trends GIS datasets, national surveys, project datasets etc. Figure A1. Proportion of Households Owning Pigs in Uganda, Source: The National Livestock Census Report (2008).

125 Uganda smallholder pigs value chain development: Situation analysis and trends 115 Figure A2. Total Number of Pigs by District in Uganda, Source: ILRI Report on site selection for smallholder pig value chains and targeting in Uganda. Figure A3. Average herd density/district in Uganda. Source: ILRI Report on site selection for smallholder pig value chains and targeting in Uganda.

126 116 Uganda smallholder pigs value chain development: Situation analysis and trends Figure A4. Pig densities/district in Uganda. Source: Report on the targeting animal production value chains for Uganda (ILRI 2012). Figure A5. Spatial distribution of human population density in Uganda (CIESIN 2011). Note: The map presents a spatial distribution of human population in Uganda based on the estimates of human population of Global Rural Urban Mapping Project (GRUMPv1) for the year Here, the population density grids measure population/km2 (CIESIN 2011). Source: ILRI Report on site selection for smallholder pig value chains and targeting in Uganda.

127 Uganda smallholder pigs value chain development: Situation analysis and trends 117 Figure A6. Percentage of population living on less than two dollars/day in Uganda. Source: ILRI Report on site selection for smallholder pig value chains and targeting in Uganda. Figure A7. Percentage of people living on less than USD 2/day in Uganda. Source: ILRI Report on site selection for smallholder pig value chains and targeting in Uganda.

128 118 Uganda smallholder pigs value chain development: Situation analysis and trends Figure A8. Districts with high poverty levels and high pig densities in Uganda. Source: ILRI Report on site selection for smallholder pig value chains and targeting in Uganda. Figure A9. Market access, travel time to nearest city with more than 50,000 persons in Uganda. Source: ILRI Report on site selection for smallholder pig value chains and targeting in Uganda.

129 Uganda smallholder pigs value chain development: Situation analysis and trends 119 Figure A10. Average pig meat consumption in Uganda. Figure A11. The macro-structure of MAAIF.